• Consumer Theory
    Required: Show that the equilibrium condition and consumer equilibrium under both cardinal and ordinal utility theory are identical. They both assume that the consumer is rational. Consumer equilibrium, under cardinal utility theory, is achieved when the sufficient condition is met. That is, the total...
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  • Merchant of Venice
    ONSUMER EQUILIBRIUM CARDINAL AND ORDINAL UNIT 5 CONSUMER EQUILIBRIUM: CARDINAL AND ORDINAL APPROACHES Structure 5.0 Objectives 5.1 Introduction 5.2 Cardinal utility approach to consumer behaviour 5.3 The law of eventual diminishing marginal utility 5.4 Consumer’s equilibrium 5.5 Basis of law...
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  • Theory of Consumer Behaviour
    concepts Consumer Behaviour Theory- Ordinal Approach and Cardinal Approach Total Utility, Marginal Utility, Relationship between Total Utility and Marginal Utility Law of Diminishing Marginal Utility Utility Analysis and Consumer Equilibrium- One Good Case and Two Goods Case Consumer- Who is a Consumer...
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  • Understanding Consumer Choice
    CONSUMER CHOICE 5.0: Introduction In this unit, we shall concentrates on a consumer by looking at the behaviour of a consumer in exclusion from both other consumers and producers. Recall that a consumer is one who uses goods and services to satisfy her wants. She is assumed to be rational meaning...
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  • Utility Study
    1.0: INTRODUCTION (UTILITY) Coca-Cola is an international brand that are consumed everyday all around the world. Statistic has shown that each day, more than 8 million can of Coca-Cola is being sold worldwide. However today we are not going to discuss about the secret behind Coca-Cola success. On...
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  • facility location procedure
    Question 1 (a) Discuss how microeconomic theory can help to explain the effects of lowering the minimum wage for teenage employees in the retail industry (b) How is the usefulness of a theory evaluated (c) “Observation without theory and theory without observation are equally useless in explaining...
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  • Comsumer Behaviour
    1.0 CONSUMER DEMAND THEORY/ CONSUMER BEHAVIOR Consumer behavior theory is concerned with how consumers make decisions about consumption given commodity price and their limited income so as to maximize utility. WHO IS A CONSUMER? A consumer is a decision making unit about consumption. PRINCIPALS...
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  • Intermediate Microeconomics Lecture Notes
    economics was limited to what is currently Micro-economics. 1.1 Economic Models; Economic theory aims at the construction of models which describe the economic behavior of individual economic units;- consumers, firms, government agencies and their interactions hence creating the economic systems of...
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  • Business Economics
    Business Economics CONTENTS 1. Introduction 2. Theory of Demand 3. Demand Forecasting 4. Theory of Consumer’s Behavior 5. Supply Analysis Chapter-1 Introduction Q.1 Give an appropriate definition of Economics. Ans.: The term economics is derived from two Greek words...
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  • Microecon_group_assignment
    the Average Revenue and Marginal Revenue from the table above are same under perfect market. b) Two important characteristics of such a firm are firm sell identical product and cannot influence the market price. c) The equilibrium output of this firm is at 2 units where Marginal Revenue equal to Marginal...
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  • Reading Me
    Market Equilibrium. Consumer Behaviour. Utility analysis: Cardinal and Ordinal utility, Equi-marginal utility. Indifference curve and its properties. Consumer Equilibrium with Cardinal and Ordinal approach, Consumer surplus, Price, Income and Cross Elasticities of Demand. Production Theory: Production...
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  • Micro Economics
    CHAPTER ONE THE THEORY OF CONSUMER BEHAVIOR Contents • UtilityCardinal Utility • Derivation of Demand curve • Ordinal Utility • Marginal rate of Substitution • Optimum Consumer • Income Consumption • Price Consumption Curve • Elasticity of Demand ...
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  • Difference Between Cardinal and Ordinal Utility
    Introduction. QN:A We all know that consumer is the one who uses goods and services to satisfy his/her wants. She /he is assumed to be rational meaning that he/she earns at utility maximization, giving his/her income and commodity prices. There several theories that have been developed to try and explain...
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  • Nature and Scope of Business Economic
    significance Introduction and meaning : (Author : Dr. M.S. Khanchi) Business Economics, also called Managerial Economics, is the application of economic theory and methodology to business. Business involves decision-making. Decision making means the process of selecting one out of two or more alternative courses...
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  • Mangerial Economics
    of the use of economic models of thought to analyze business situations. Some writers consider managerial economics as the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning by management. The underlying idea of all these definitions...
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  • Nature and Scope of Managerial Economics
    Marginal concept in economics. Economics of information: Risk, Uncertainty, Asymmetry of information, Adverse Selection, Market Signaling. The theory of firm; Econometric Models & Economic optimization. ____________________________________________________________________________________ Economics...
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  • oumh
    Microeconomics definition 2 1.2. Utility Theory 2 2. Description and Explanation of Cardinal and Ordinal Utility 2.1. Cardinal Utility Theory 3 2.2. Ordinal Utility Theory 5 3. Differences between Cardinal and Ordinal Utility Theories 3.1. Measurement Of Satisfaction ...
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  • Utility
    Utility Utility is a theory in economics that measures the satisfaction one gains from consumer a good/product. Cardinal Utility Vs Ordinal Utility Cardinal Utility - measured in Utils Ordinal Utility – according to preference Law of Diminishing Marginal Utility The more we have of a thing...
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  • microeconomics
    completion of this unit, students should be able to: 1. Demonstrate understanding of the fundamental methodology and principles of Microeconomic theory and practice; 2. Comprehend and critically appraise economic decisions made by governments, Businesses and households; 3. Use a range of skills...
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  • Utility
    1. Utility Utility is the satisfaction one gets by consuming a good or a service. 2. Cardinal and Ordinal approaches of analyzing utility. a) The Cardinal Approach This approach advances that utility can be measured numerically and subjectively in a unit called Utils. For example a consumer...
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