Intermediate Microeconomics - Assignment Example

Oligopoly is a general economic method in the current society. The term “oligopoly” originates from the Greek “oligos” connoting "little or small” and “polein” implying “to sell.” When “oligos” is utilized in the plural, it means “few.” Therefore, Oligopoly is a condition in which a particular market is run by a small group of firms.

Therefore, eliminating taxes would prevent the government from reaching its desired revenue targets and this would result in a deficit between what the government spends and what it collects. Ans 2) A private good is one that is excludable in nature and is unique for every consumer.

This paper identifies the unique properties of each of the markets and makes a conclusion on the two most viable for any investor seeking to undertake massive business expansion to an emerging market.

Many reputed finance firms had to declare bankruptcy as there were huge losses on instruments linked to mortgagees and corporate loans. Lehman Brothers, Citibank, manufacturing companies like General Motors, both individuals and

Applying utility function in investing enables the investor to understand the usefulness of investing in various securities as opposed to diverse ones. For example, fixed

Monopoly firm is the single firm that autonomously possesses the control of the market solely while monopolistic firms are the firms

Cross elasticity of demand measures the responsiveness of the demand for the product in respect to change in price of another product. It depicts the

Similarly if he spends his entire budget on food then he will be able to consume 0 unit of water and 4 unit of food. The table below shows that how the consumer is able to allocate his budget on food and water.

Coffee and tea are examples of positive cross price elasticity of demand. The value of elasticity of demand normally differs along a demand curve. On a demand curve for coffee, cross

us, as beef price increases and since the customers are price sensitive, the demand will decrease as the consumers will resort to consuming chicken since they lower priced. The consumers will thus reduce consumption of beef and increase consumption of chicken. The supply of