Why have economists coined terms such as 'merit' and 'demerit' goods and thus made a generalisation about every consumer of these goods?
Yes, some people will not be fully aware of the benefits of certain things, but those who took the liberty to find out will and so i'm going to struggle to use these two terms in my forthcoming exam, because i don't agree with them at all.
Hi i have a question and i didn' understand how can i solve it.
Jim's utility function is U(x;y)=xy.Jerry's utility function is U(x;y)=1000xy+2000.Tammy's utility function is U(x;y)=xy(1-xy).Oral's utility function is U(x;y)=-1/(10+2xy).Marjoe's utility function is U(x;y)=x(y+1000).Pat's utility function is U(x;y)=0.5xy-10000.Billy's utility function is U(x;y)=x/y.Francis's utility function is U=-xy.
a)Who had the same preferences as Jim?
b)Who had the same indifference curves as Jim?
c)Explain why the answer to (a) and (b) differ.
Do rising student fees make economic sense?
Jacob's short run production functions can be summarised:
If Jacob works L hours per day, then he is able to produce 0.3L kilograms of fish, as long as L is up to 15. Jacob may mork more than 15 hours, but due to darkness and mist, he cannot increase the catch any more
Q ) Can Jacob produce more than 4.5kilograms of fish?
No, maxium is 0.3 x 15 = 4.5
Q) Bananas are used as currency in this little economy. The daily rental price of fishing net is 100 bananas; one hour of labour somewhere else could bring Jacob 30 bananas. What is the total short run cost function of Jacob's business, for every level of fish output, q. Work out C(q)
I can't do this. I know that fixed costs are 100 (the fishing net). I can't seem to figure out the variable costs...
A few questions about measuring income inequality:
i need to calculate a gini coefficient, but not the way of using the area under the graph but i don't know what the formula is...
what is the formula for the log variance measure of inequality?
Can someone please explain to me how the gold standard works?
Can you please check I am right?
* Perfectly competitive.
* Market price = £15
* Maximises profit at 1500
* Average total cost = £21
* Minimum Average Variable Cost = £12
* Minimum Average Total cost = £18.
Now the question asks for a short run profit, and I have graphed it out but have come out with.
1) Total Revenue = 15*1500 = 22500
2) Total Cost = 18*1500 = 27000
3) Hence Profit = negative £4500.
Also where long term marginal cost = long term average cost this then shall be equal to price P1? Any output above this then results in the price increasing and hence then new firms will want to enter, if the price is below P1 then firms will want to exit the market?
I am guessing as there appears to be losses that firms will want to exit the industry.
Then the price shall become £18 in the long run, and the economic profit shall become normal?
I have a question about international economics and the IMF
Everybody says that if a country defaults on their sovereign debt they are blacklisted from the international markets - yet spain has done so, and Argentina was back in a matter of months... is it really as serious as people suggest?
# Markets with high exit barriers are unstable and not self-regulated, so the profit margins fluctuate very much over time.
# Markets with a low exit barrier are stable and self-regulated, so the profit margins do not fluctuate much over time.
Can anyone please explain these two points.