Microeconomics for Business

Business economics is normative in character. Why?

How is price elasticity of supply computed by arc method?

Write any two examples of explicit costs.

How is economies of scope measured?

Write any four assumptions of indifference curve.

Let $Q = 14L + 7L^2 - L^3$. Compute $VMP_L$ at $P = \text{Rs. } 10$ and $L = 5$ units.

Prepare a list of uses of price elasticity of demand in taking business decisions.

What are the causes for the operation of law of increasing returns to scale?

Write the formula for pricing the product under cost-plus pricing.

Let $e_{XY} = 4$ and $e_{AB} = -0.8$. Describe the nature of goods X and Y and goods A and B.