MGEB02H3 Study Guide - Pinto Horse, Expected Utility Hypothesis, Fixed Cost

• School: UTSC
• Department: Economics for Management Studies
• Course: MGEB02H3
• Professor: A. Mazaheri

Document Summary

Exam inhog c type of indifference curves goods perfect otonarmeissues. Lagrange = - x(pxx + pxy - j) c= ( =) x g0x(pmax- pd) Set p: c in g output supplied - mc=p. Sr supply curve prabitby firm - t: p9-stc. Mc = ac user in srit nc fixed cost. > irs: increasing returns to scale, when output increases in a greater proportion than the increase in input. Cps :constant return to scale, when an increase in inputs cause the same proportional increase in output. Drs: diminishing returns to scale, when all production variables are increased by a certain; resulting in a less-than-proportional increase in output it no a luna. Mc = derivative of tc cost output elasticity. How many firms? sub in pinto ghunc then n = > sratc is u-shaped eventually become upware sloping (cid:8869) very large for small x, because at fixed cost. Utility of expected: sub in elk into utility function ule (ii)