Questions on differentiation (Division/Quotient Rule)
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Questions on differentiation (Multiplication Rule)
Questions Answers 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
Questions on differentiation (addition and subtraction)
Note(For mobile users): For better view request for desktop site and/or rotate your phone to landscape mode. Questions Answers 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
Public Goods
The pure public good has been the subject of most economic analysis of public goods. In many ways the pure public good is an abstraction that is adopted to provide a benchmark case against which other, more realistic, cases can be assessed. A pure public good has the following two … read more
Law of Variable Proportion
The law of variable proportion occupies an important place in economic theory. This law examines the production function with one factor variable, keeping the quantities of other factors fixed. In other words, it refers to the input-output relation when output is increased by varying the quantity of one input. When … read more
Indirect Utility Function
In the cardinal utility approach, the utility function was direct in the sense that the total utility was related to the quantities of different commodities and services consumed by a consumer at a given time. The direct utility function can be expressed as: The ordinary demand equations for the goods … read more
Cardinal Utility
The consumer is assumed to be rational. Given his income and the market prices of the various commodities, he plans the spending of his income so as to attain the highest possible satisfaction or utility. This is the axiom of utility maximisation. In the traditional theory it is assumed that … read more
Basic Competitive Models
Basic competitive models gives an answer of the control problems of an economy i.e., who makes the decision of what to produce, how to produce and for whom to produce. We know that, economics has been evolved and developed in the framework of a free market economy in which the … read more
Slutsky Equation (Theorem)
A change in the price and income alters the consumer’s expenditure pattern. So to know the consumer’s expenditure pattern due to changes in price and income, all the variables should be varied simultaneously. Let, Utility function be Subject to Or Here we can form a new function with the help … read more
Cobb – Douglas Production Function
This Cobb-Douglas production function is based on the empirical study of the American manufacturing industry made by Paul H. Douglas and C.W. Cobb. It is a linear homogeneous production function that considers only two inputs, labor and capital, for the total output of the manufacturing industry. The Cobb-Douglas production function … read more