You are here:

Economics/managerial economics

Advertisement


Question
sir, plz help to write this assignment..
1.Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic?
2."Cost function expresses the relationship between the cost and its determinants." Discuss this statement giving examples from any firm of your choice.
3.what are the recent development with respect to the code and laws of Corporate Governance in markets other than india?
4."A characteristic of oligopolistic market is that, once the general price level is established it tends to remain fixed for an extended period of time." Discuss the economic rationale underlying this phenomenon.
5.In any firm of your choice, try to find the effect of change in demand and change in supply on price and quantity of product.
suggest me the site r book to search these ans..

Answer
Hi Ashwini,

Thank you for your assignment questions. Thank you for seeking my advice for suitable reference materials for the five questions. Before I would refer you to suitable materials, I would first like to tell you that these questions could be answered at differing levels of standard required by different academic institutions. The minimum standard requires school-level algebra and geometry, and I believe you have it. With more advanced-level mathematics, the answers could be more sophisticated and better placed. Please let me know of your level of expertise in mathematics if you want further intensive analysis.


Let me briefly give you an overview of the materials that may help you get the answers to these questions.

First, take up Samuelson’s “Economics.” This will explain production-possibility curves. You will discover that PPC have “varying opportunity costs” because the curve is NOT straight line but “concave.” If you are comfortable with more math, get hold of Alain Anderton’s “Economics”  or of John Sloman’s “Economics.” These are the British books meant for A-Level. If you want an easier one, go for the O-Level book, “Economics” by Stanlake and Grant. Better, you may look up some books on microeconomics and macroeconomics. The materials in Samuelson may provide almost all the answers you need.

You may look up the search engine for the following writers: (a) Sayre, Morris (excellent exposition with school-level math); (b)Hubbard, O’Brien, Serletis, Childs; (c) Parkin and Bade (one book contains both micro- and macroeconomics, mainly with examples from North America).

If your math is very good, then you may try your hands on Russel and Wilkinson, “Microeconomics: A Neoclassical Synthesis” or Handerson and Quandt, “Microeconomics: A Mathematical Analysis.” The former is meant for American students, the latter for British students. Both are very good, but the former is more advanced.

SOME HINTS ABOUT ANSWERS TO YOUR QUESTIONS
QUESTION 2: For your answer to Question 2, take cost as a function of labour and capital, for example. You may look up the search engine about “Solow Model of Growth,” where you will see cost function, but that is going to be difficult without very good background in math. Or you may take up a simple model with variable cost and fixed cost, explaining that in terms of average and variable costs, maybe pertaining to monopoly. A firm of your choice could be a monopolist. Or, it could be an oligopolist. Or, you find out from the search engine. Samuelson’s book may help you.

QUESTION 3: About your Question 3, this is more of business studies than of economics. You may please refer to “Business Studies” by Bruce R. Jewel. Read the first chapter together with other materials you may get on the Internet.

QUESTION 4: As to your Question 4, look up “Kinked Demand Curve under Oligopoly.” you will find out that in oligopoly price is normally at the “kink” of the demand curve, the kink separating the demand curve  into two different straight-line segments, giving two “different elasticities in two segments” because of which an oligopolist “dare not raise the price because others will sit tight (i.e., will not raise price) and will therefore lose customers”; and “dare not lower price because others will follow suit and a price-cutting war will ensue and nobody will be better off, leaving him worse off.”

QUESTION 5: Regarding Question 5, please look up the two things:
(a)   “Shift in the demand curve” (due to changes in income, fashion, tastes, etc.). The demand curve may shift to the right or to the left, thereby causing change in the prices “at each and every level of output.”
(b)   “Shit in the supply curve” (due to changes in technology, raw-materials availability, labour supply, taxes and subsidies, etc.). The supply curve may accordingly shift to the right or to the left, thereby causing a “movement along the demand curve, with price changing along the demand curve.”

I hope, Ashwini, this serves your query. Best.

Economics

All Answers


Answers by Expert:


Ask Experts

Volunteer


Eklimur Raza

Expertise

It appears some students in this website are confused about elasticity of demand and the slope of the demand curve when they are trying to figure out why rectangular hyperbola comes up in case of unitary demand curve. First, they don't know that RH can be depicted in a positive quadrant of price,quantity plane. Secondly, they make the mistake that the slope of RH is constant at -1. Two points could help them: first, e=1 at each and every point of the RH, because the tangent at any point shows lower segment=upper segment (another geometric definition of e); yet slopes at different points,dQ/dP, are different; second, e is not slope but [(Slope)(P/Q)]in absolute terms. Caveat: only if we measure (log P) along the horizontal axis and (log Q) up the vertical axis, can we then say slope equals elasticity --in which case RH on P,Q plane is transformed into a straight-line demand curve [with slope= -tan 45 deg] on (log Q),(logP) plane, and e= -d(log Q)/d(log P). [By the way, logs are not used in college textbooks --although that is helpful in econometric estimation of elasticity viewed as an exponent of P, when demand equation is transformed into log-linear form.] I have not found the geometrical explanation I have given in any textbook followed in undergraduate and college classes in Canada (including the book followed in a university where I taught for a short time and in the book followed in George Brown College, Toronto, where I teach.

Experience

About 11 years' teaching economics and business studies, and also English, history and elementary French.Practical experience in a development bank, working with international donor agencies like the World Bank and the ADB. Experience in free-lance journalism, including Canada's "National Post."

Organizations
I teach micro- and macroeconomics at George Brown College (continuing education), Toronto, ON, Canada.

Publications
Many articles and editorials, on different subjects, in English newspapers. Recently an applied Major Research Paper, based on a synthesis of the Solow growth model and the Lewis two-sector model, has be accepted by Ryerson University, Toronto. Professors Thomas Barbiero and Eric Cam, Ryerson University, accepted the paper.

Education/Credentials
Master degree in Interantional Economics and Finance and diploma with honours in Business Administration from Canada.

Awards and Honors
Received First Prize in an inter-university Literary Contest.

©2016 About.com. All rights reserved.