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    Managerial Economics Unit 6 Unit 6 Cost Analysis Structure: 6.1 Introduction Case Let Objectives 6.2 Types of Costs 6.3 Cost-Output Relationship: Cost Function 6.4 Cost-Output Relationships in the Short Run 6.5 Cost-Output Relationships in the Long Run 6.6 Summary 6.7 Glossary 6.8 Terminal Questions 6.9 Answers 6.10 Case Study Reference/E-Reference 6.1 Introduction In the previous unit‚ we learnt that output does not always increase proportionately‚ with increase

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    short-run marginal cost curve is generally U-shaped‚ reflecting the law of diminishing marginal returns. Also‚ the marginal cost curve intersects both the average total cost and average variable cost curves at their lowest points. The long-run average total cost curve shows the minimum cost per unit of producing each output level when we can construct any desired size of a factory. Economies of scale and diseconomies of scale account for the U-shaped appearance of this cost curve. In discussing the

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    review chapter 2

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    imposes tax on producer. This will lead to: a. a right shift in supply curve b. a left shift in supply curve c. a movement in supply curve d. a movement in demand curve 2. Assume that A’s supply is constant‚ A and B are substitute goods. The decrease in B’s price will lead to: a. a rightward shift in A’s demand curve b. a rightward shift in B’s demand curve c. a leftward shift in B’s demand curve d. None 3. The Engel curve describes the relationship between: a. Price and quantity demanded

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    Economics

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    THE ELEMENTS OF DEMAND AND SUPPLY TOPICS: - DEMAND SUPPLY - LAW OF DEMAND LAW OF SUPPLY - DETERMINANTS OF DEMAND DETERMINANTS OF SUPPLY - DEMAND SCHEDULE SUPPLY SCHEDULE - DEMAND CURVE SUPPLY CURVE The Law of Demand And Supply is one of most important laws in economics. It give us a closer look at the system of exchange in the circular flow. There is exchange taking place because of this law. In the Philippines the law assumes greater importance since our

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    BA Principles Of Economics

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    Principles of Economics (Common for Private Registration to BA History‚ Political Science‚ Sociology‚ & Islamic History Programmes) 1. a) b) c) d) e) In Economics the central problem is: money production consumption allocation scarcity 2. a) b) c) d) Macroeconomics deals with: the behaviour of firms. the activities of individual units. economic aggregates. the behaviour of the electronics industry 3. a) b) c) d) Microeconomics is not concerned with the behaviour of: firms. aggregate demand.

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    cost

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    of implicit costs). 8-4 (Key Question) Complete the following table by calculating marginal product and average product from the data given. Plot total‚ marginal‚ and average product and explain in detail the relationship between each pair of curves. Explain why marginal product first rises‚ then declines‚ and ultimately becomes negative. What bearing does the law of diminishing returns have on short‑run costs? Be specific. “When marginal product is rising‚ marginal cost is falling. And

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    demanded of the product increases. 3. The non-price determinants of demand. a. Income  change in income affects 2 types of goods b. Normal goods: most goods that if the income rises‚ their demand will rise as well I. As income rises the demand curve will shift to the right and the size of the shift depend on the good itself. I. II. Inferior goods: if a product is considered inferior‚ as the income increases‚ the quantity demanded for the product will fall‚ as people

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    Economic Written Report

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    to Economic Written Report 6.1 a) Consider a monopoly facing the following demand and MC curves: Demand: P = 12 – 0.002 Q MC: MC = 3 + 0.001 Q (i) Calculate the profit maximizing output of this monopoly. Ans: The output level of monopoly to maximize profit is MR=MC. As‚ P=a-bQ‚ the MR curve will be MR=a-2bQ‚ So‚ 12-2(0.002Q) = 3+0.001Q 12-0.004Q = 3+0.001Q 9 = 0.005Q Q = 1800 Monopoly Price

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    as control of inflation‚ investment as well as employment. Interest rates refer to the price paid by deficit agents for borrowing funds from the surplus agents. A line that plots interest rate at a set point in time is the term structure or yield curve. Interest rates which may be short term or long term are linked to a government’s macro-economic policy and future expectations of such a policy .The UK government uses Treasury bill and bond prices to implement its monetary policy. Bills‚ which are

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    Defnition Fof Parabola

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    Definitions American Heritage® Dictionary of the English Language‚ Fourth Edition 1. n. A plane curve formed by the intersection of a right circular cone and a plane parallel to an element of the cone or by the locus of points equidistant from a fixed line and a fixed point not on the line. Century Dictionary and Cyclopedia 1. n. Same as parabole. 2. n. A curve commonly defined as the intersection of a cone with a Plane parallel with its side. The name is derived from the following property

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