Question
If the elasticity of demand is -2 and price charged by
the firm is Rs.10 and quantity sold is 15 units. What is the Lerner’s Index of Monopoly power?Solution
Lerner’s Monopoly Power is 1/e = ½.
What do you mean by ‘under conditions of a perfect competition in the product market’?
For a positively sloped LM curve, which of the following statements is CORRECT?
An increase in the expected rate of inflation
Consider two independent random variables: X~N(5, 4) and Y~N(3, 2). If (2X + 3Y)~N(μ, σ2), then the values of mean (μ) and variance (�...
The df value for a chi-square for is based on-
Concepts of displacement and concentration effect in public expenditure are attributed to
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A.C. Pigou an...
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What do you mean by ‘under conditions of a perfect competition in the product market’?
GDP= 12000, tax rate was 15% of GDP, Private savings was 12% of GDP and public savings was 360. Find consumption level of closed economy.
If the Law of One Price holds then
I. Changes in national saving do not affect the real exchange rate
II. Changes in investment spending ...
