a: autonomous consumption expenditure, that is, consumption that is independent of
consumer?s income.
b: marginal propensity to consume (mpc) which refers to the amount of the consumer?s
extra income devoted to consumption. It?s usually a fraction and less than 100%.
d: autonomous tax, that is, the amount that is independent of income paid as tax.
t: marginal propensity to tax, which refers to that portion of extra income paid as tax. It?s
normally in form of a fraction and, again, less than 100%.
Wilfykil answered the question on February 6, 2019 at 10:37
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The total cost equation in the production of bacon at some hypothetical factory is
C = 1000 + 100Q – 15Q2 + Q3
Where C = Cost...
(Solved)
The total cost equation in the production of bacon at some hypothetical factory is
C = 1000 + 100Q – 15Q2 + Q3
Where C = Cost measured in shillings, while Q = quantity measured in kilograms
What is the Marginal cost of the 12th Kilogram?
Date posted:
February 6, 2019
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Answers (1)
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The total cost equation in the production of bacon at some hypothetical factory is
C = 1000 + 100Q – 15Q2 + Q3
Where C = Cost...
(Solved)
The total cost equation in the production of bacon at some hypothetical factory is
C = 1000 + 100Q – 15Q2 + Q3
Where C = Cost measured in shillings, while Q = quantity measured in kilograms.
Compute the total and average costs at output level of 10 and 11 kilograms.
Date posted:
February 6, 2019
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Answers (1)
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Discuss some of the economic implications of a rising trend in the rural-urban migration and offer
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(Solved)
Discuss some of the economic implications of a rising trend in the rural-urban migration and offer
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Date posted:
February 6, 2019
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Answers (1)
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(Solved)
Briefly explain and illustrate quasi-rent.
Date posted:
February 6, 2019
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Answers (1)
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(Solved)
Using well labelled diagrams, illustrate cases when the total factor payments may equal to economic rent,
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Date posted:
February 6, 2019
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Answers (1)
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Explain what is meant by the terms transfer earnings and economic rent of a factor of production
(Solved)
Explain what is meant by the terms transfer earnings and economic rent of a factor of production
Date posted:
February 6, 2019
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Answers (1)
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A monopoly firm is faced with the following demand function
P = 13 – 0.5Q
The Marginal Cost function for the firm is given by 3 +...
(Solved)
A monopoly firm is faced with the following demand function
P = 13 – 0.5Q
The Marginal Cost function for the firm is given by 3 + 4Q and the total fixed cost is 4.
Determine the output level at the break-even point.
Date posted:
February 6, 2019
.
Answers (1)
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A monopoly firm is faced with the following demand function
P = 13 – 0.5Q
The Marginal Cost function for the firm is given by 3 +...
(Solved)
A monopoly firm is faced with the following demand function
P = 13 – 0.5Q
The Marginal Cost function for the firm is given by 3 + 4Q and the total fixed cost is 4.
Determine the level of super-normal profit if any.
Date posted:
February 6, 2019
.
Answers (1)
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A monopoly firm is faced with the following demand function
P = 13 – 0.5Q
The Marginal Cost function for the firm is given by 3 +...
(Solved)
A monopoly firm is faced with the following demand function
P = 13 – 0.5Q
The Marginal Cost function for the firm is given by 3 + 4Q and the total fixed cost is 4.
Determine the profit maximizing output.
Date posted:
February 6, 2019
.
Answers (1)
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Illustrate and explain the short-run supply curve of a firm in perfect competition
(Solved)
Illustrate and explain the short-run supply curve of a firm in perfect competition
Date posted:
February 6, 2019
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Answers (1)
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Explain why a firm in perfect competition may continue in the production of goods which it
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(Solved)
Explain why a firm in perfect competition may continue in the production of goods which it
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Date posted:
February 6, 2019
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Answers (1)
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(Solved)
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Date posted:
February 6, 2019
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Answers (1)
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Write explanatory notes on the various types of internal and external economies of scale.
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Date posted:
February 6, 2019
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(Solved)
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Date posted:
February 6, 2019
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(Solved)
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Date posted:
February 6, 2019
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Answers (1)
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(Solved)
Using a well illustrated diagram, explain why prices are "sticky" downwards under an
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Date posted:
February 6, 2019
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Answers (1)
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(Solved)
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Date posted:
February 6, 2019
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(Solved)
What key assumptions underlie the law of variable proportions?
Date posted:
February 6, 2019
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February 6, 2019
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(Solved)
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Date posted:
February 6, 2019
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