Law of Variable Proportion
The law of variable proportion occupies an important place in economic theory. This law examines the production function with one …
Indirect Utility Function
In the cardinal utility approach, the utility function was direct in the sense that the total utility was related to …
Cardinal Utility
The consumer is assumed to be rational. Given his income and the market prices of the various commodities, he plans …
Basic Competitive Models
Basic competitive models gives an answer of the control problems of an economy i.e., who makes the decision of what …
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 …
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 …
Questions on Partial Derivatives
Find all the Six Partial Derivatives of the following and verify thatÂ
Questions on Linear Programming Problem (LPP) Graphical Method
Question 1: Maximize Subject to, Ans: (60,20) and 1100 Question 2: Maximize Subject to, Ans: (4,2) and 10 Question 3: …
Schumpeter’s Innovation Theory of Trade Cycle
The innovation theory of trade cycles is associated with the name of Joseph Schumpeter. Schumpeter accepts Juglar’s statement that “the …
Inter-temporal Price Discrimination
Two other closely related forms of price discrimination are important and widely practiced. The first of these is inter-temporal price …