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1 Indifference curve is the locus of all those points which give same level of utility

Economics

1 Indifference curve is the locus of all those points which give same level of utility.

U(X, Y)= X1/2 +2Y1/2

U(9, 1)= 91/2 +2(1)1/2 = 3+2= 5 Point A

U(3, 2)= 31/2 +2(2)1/2 = 3.15

U(1, 9)= 11/2 +2(9)1/2 = 1+6= 7

U(4, 4)= 41/2 +2(4)1/2 = 2+4= 6

U(2, 8)= 21/2 +2(8)1/2 =1.41+5.66= 7.07

U(1, 4)= 11/2 +2(4)1/2 = 1+2(2)= 5

Utility at point A and at (1, 4) is equal so these two lie on same indifference curve.

Option e is the correct answer.

Answer :- Long tail is a kind of business strategy in which companies can have reasonable amount of profit by sell of low volumes of hard to find goods to many consumers , in place of selling large volume of decreased number of popular goods . Chris Anderson proposed this theory by stating that goods with low demand can compete or exceed sales relative to few best sellers , only if the store or distribution channel is large .

Long tail can be considered as a type of liability in insurance firm or tail risk arise in investment portfolio.Long tail occurs when less popular goods (less common product ) are sold and these products return good amount of profit through decreased distribution and marketing costs. His theory suggest that less common goods can return good amount of profitability as the consumers are shifting from mainstream market. Long tail theory is supported as the increasing number of online market has boosted the competition and selling a huge number of products through internet . For example :- most of us have been recommended products by Google and even shopped in Amazon.

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