Explain the Arc Method of Measurement of Elasticity
Explain the Arc Method of Measurement of Elasticity.
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Arc Method: the Geometric or point method is applicable only while there are minute (very small) variation in price and demand. But, Arc elasticity measures elasticity among two points. This is a measure of the average elasticity in words of Watson that Arc elasticity is the elasticity upon the mid-point of demand curve arc. Formulate measure elasticity is as illustrates below:
ED = ?Q/ ?P × (P1+P2)/ (Q1+Q2) or
(Change in D/ Average D) x (Average P/Change in P).
Here, ?Q= change in quantity
Q1= original quantity
P1 = original price
Q2= new quantity
P2 = New price and
?P= change in price.
Explain the decision making areas of the decision making.
Explain about the term smoothing techniques.
Illustrates the area of decision making in Managerial / Business Economics?
Illustrates the Objectives of managerial economics?
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When the wage rate price of $13, in that case this firm would hire slightly fewer than: (i) 600 workers. (ii) 700 workers. (iii) 800 workers. (iv) 900 workers (v) 1000 workers. Q : Attain new equilibrium in purely When this purely competitive labor market is primarily in equilibrium at D0L, S0L and after that excessive job safety standards are imposed through law, a new equilibrium will be attained at: (1) D0L, S0L. (
When this purely competitive labor market is primarily in equilibrium at D0L, S0L and after that excessive job safety standards are imposed through law, a new equilibrium will be attained at: (1) D0L, S0L. (
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