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Homework answers / question archive / What does the l Engel's Rule describe? All combinations along a consumer's indifference curve generate utility level If a consumer buys expensive products because he prefers brands, quality etc
What does the l Engel's Rule describe? All combinations along a consumer's indifference curve generate utility level If a consumer buys expensive products because he prefers brands, quality etc. this effect is called in economics Twoja odpowied? A) greater A) Giffen Effect B) lower Describe the 1 Gossen's Rule. B) Veblen Effect C) the same C) Engel Effect Twoja odpowied? D) There is not sufficient information OD) none of the above Which of the following statements is always true for the firms in an oligopoly?* Which of the following is NOT a characteristic of a monopoly? If Joshua gets 200 utils from consuming three slices of pizza, 220 utils from consuming four slices of pizza and 230 utils from consuming five slices of pizza, then the Joshua's marginal utility from the fifth slice of pizza is OA) There is only one seller. A) Each firm sells a differentiated product. B) A monopolist is a price-taker. B) Each firm is small relative to the market. C) There exist barriers to entry. A) 230 utils. C) There are barriers to entry. B) 30 utils. D) A monopolist's sales revenue is constrained by the market demand. O c) 20 utils. D) Each firm ignores the possible reactions of its rivals when making decisions OD) 10 utils. Describe the term of indifference curve? * Twoja odpowied? There is some information about a firm's activity. Calculate the Average Revenue in this company." is a cost that independent of the quantity produced by the firm and is incurred by the firm in the short run.* Valur A) Fixed cost 2090 1000 Tractor X 2000 radoved Yod X VS Sales for worken W fie Social B) Economic cost Mark's Baseballs produces baseballs. Mark's Baseballs has total fixed costs of $5000. Mark's average variable cost is $200, and his average total cost is $250. How many baseballs is Mark currently producing?* 9000 40 C) Variable cost Betal w mia Linergy fare 700 2000 000 OD) Average total cost Twoja odpowied? Twoja odpowied? !
Answer to the question no. 1:
Engel's Law: This law explains the relationship between the relationship between food expenditure and the level of income of the people. It states that the income elasticity of demand for the food product is less than 1 which implies that when the income increases, the level of consumption of food increases but the increase in income is always greater than the food consumption.
Answer to the question no. 2:
Gossen's Law: First Law: Gossen's first law is the law of diminishing marginal utility. This states that when a person consume a commodity with every additional unit of the consumption of the good, the marginal utility derived is decline. In other words, as a person consumes more and more of one good, with every additional unit, the level of marginal utility declines.
Second Law: It is the equimarginal utility. It states that a person reaches its equilibrium at a level where the ratio of MU and price of good 1 is exactly equal to the ratio of MU and price of good 2.
Answer to the question no. 3:
Option d: 10 Utils.
Explanation: The change in total utility when the person increases his consumption from 4 unit to 5 unit is 10. Thus, the additional utility derived from the consumtion is 10, so , MU of 5th unit of consumption is 10.
Answer to the question no. 4:
Answer to the question no. 5:
Option c: The same.
Explanation: Each point of on the indifference curve gives the same level of utility. It shows the different combinations of two good which givessame level of utility.
Answer to the question no. 6:
Answer to the question no. 7:
Option a: Fixed cost.
Explanation: In the short run the firms incurr the variable cost and the fixed cost. The variable cost is dependent of the level of output. However, the fixed cost is not dependent on the level of output and reain fixed throughout the production process.
Answer to the question no. 8:
Option b: Veblen effect.
Explanation: It states that when the price of the good increases prople will tend to buy more of that since it is expensive.
Answer to the question no. 9:
Option b: A monopolist is a price taker.
Explanation: A monopoly is a pice aker. Since there is only one firm in the market, so, the firm can influence the level of price and output and control the level of output. So, they fix their price at a maximum level and operate. Thus, they are not price taker rather price maker.
Answer to the question no. 10:
An indifference curve shows different bundles of two goods which give same level of utility.
Answer to the question no. 11:
100 units of baseball Mark is currently producing.
