Diminishing Marginal Productivity Continue reading
Diminishing Marginal Productivity
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Tag Archives: microeconomics
Short run and Long Run production, Isoquants and MRTS
Short run and Long Run production, Isoquants and MRTS Continue reading
Economic Profits equation
Economic Profits equation Continue reading
Mathematical derivation of cost minimization
Mathematical derivation of cost minimization Continue reading
Discuss the shape of quasilinear utility function
Discuss the shape of quasilinear utility function Continue reading
MRS for the cobb douglas utility function, u=xy, at the point 5,10
Calculate mrs for the cobb douglas utility function, u=xy, at the point 5,10 Continue reading
Marshallian demand vector or demand function for u=xy
Marshallian demand vector or demand function for u=xy Continue reading
Demand curve or Marshallian demand function for u = max{x,y}
Derive the demand curve or marshallian demand function for u = max{x,y} Continue reading
MRS for perfect substitutes is a constant
show by an example that mrs for perfect substitutes is a constant Continue reading
Perfect complements’ utility function u=min{ax,by}
why perfect complements have the utility function of the form u=min{ax,by} ? Continue reading
Monotonicity of preferences and indifference curves
What is meant by monotonicity of preferences ? What does this imply about indifference curves? Continue reading
Can two indifference curves cross
Can two indifference curves cross? Continue reading
What are Indifference curves
What are Indifference curves? Continue reading
Budget set in case of rationing
This video explains the shape of the budget set in case of rationing of any one of the product Continue reading
Shift in budget line when taxes and subsidies are imposed
This video explains the affect of taxes and subsidies on budget line of the consumer. Continue reading
Shift in budget line when income changes
Suppose if income of the consumer increases, she can experience an expansion of her budget and hence budget line would move outwards in a parallel manner, assuming prices remain constant. Continue reading
Shift in budget line when price changes
This video explains, if price of one of the commodity changes, how does this affect the budget line. Continue reading
Budget line and budget set
Suppose individual lives in a two commodity world {x,y} and prices she faces for these products are given by {p1,p2} , her income is m. Budget line all the bundles, she can afford, when she spends her entire income, i.e. p1x + p2y = m. Budget constraint shows all bundles which are affordable p1x + p2y ≤ m. Continue reading
Perfect Complements
Perfect complements are those goods, which have to be used together to satisfy a want. For example: car and fuel. This video explains what are perfect complements, what is the form of their utility function and how to draw an indifference curve of perfect complements. Continue reading
Perfect Substitutes
Perfect substitutes are those commodities which give equal satisfaction to an individual. For example: coke and pepsi. This video explains what are perfect substitutes, how does their utility function look like and how to draw their indifference curve Continue reading
