With respect to the applications of dynamic optimisation, explain the optimal rate of extraction of exhaustible resources by monopoly

Dynamic optimization is often applied to analyze the optimal rate of extraction of exhaustible resources in the context of monopoly. ...

ignou kul December 30, 2023

Blog

Consider a consumer who buys two goods, x and y with utility function u(x, y) = 2√x + y. The consumer’s income is 20 and price of y is 4. Compute the optimal consumption bundle when the price of x is equal to 1 using constrained optimisation

To find the optimal consumption bundle, we can set up the consumer's optimization problem using constrained optimization. Buy MEC-203 Pdf ...

ignou kul December 30, 2023

Blog

Explain the necessary and sufficient conditions in case of unconstrained optimisation

In unconstrained optimization, necessary conditions for a local minimum or maximum involve critical points where the derivative of the objective ...

ignou kul December 30, 2023

Blog

New-Keynesian macroeconomics

New-Keynesian macroeconomics is a school of thought that evolved in the late 20th century as a response to certain criticisms ...

ignou kul December 30, 2023

Blog

Inter-temporal utility maximization

Intertemporal utility maximization refers to the economic concept where individuals or households make decisions about consumption and saving over time ...

ignou kul December 30, 2023

Blog

Describe the importance of public debt in an economy. Under what conditions is public debt not sustainable in an economy

Importance of Public Debt: Buy MEC-102 Pdf Get the full solved assignment PDF of MEC-102 of 2023-24 session now. Financing ...

ignou kul December 30, 2023

Blog

Bring out the factors that lead to rigidity in wages and prices

Several factors contribute to the rigidity in wages and prices: Buy MEC-102 Pdf Get the full solved assignment PDF of ...

ignou kul December 30, 2023

Blog

Specify a loss function and interpret it. What is meant by dynamic inconsistency

Loss Function: Buy MEC-102 Pdf Get the full solved assignment PDF of MEC-102 of 2023-24 session now. A loss function ...

ignou kul December 30, 2023

Blog

Discuss how an economy achieves equilibrium in the IS-LM model. What do the points outside the IS curve signify? Highlight the factors that influence the IS and the LM curves

In the IS-LM model, equilibrium is achieved at the intersection of the IS (Investment and Saving) curve and the LM ...

ignou kul December 30, 2023

Blog

Pooling and separating equilibrium

Pooling and separating equilibria are concepts often used in game theory and economics to describe different strategies or outcomes in ...

ignou kul December 30, 2023

Blog

Economies of Scale

Economies of scale refer to the cost advantages that a business can achieve as its scale of operation increases. Buy ...

ignou kul December 30, 2023

Blog

Bilateral monopoly

Bilateral monopoly occurs when there is only one buyer (monopsony) and one seller (monopoly) in a market. Buy MEC-101 Pdf ...

ignou kul December 30, 2023

Blog

Radha has assets worth 10,000 rupees and is facing a loss of 3,600 with a probability of 0.002. She is indifferent between paying G rupees for insurance protection and assuming the risk of loss personally. She values total assets of amount w≥0 according to the utility function u (w) = w1/2. Determine G

Radha is indifferent between paying for insurance protection and assuming the risk of loss personally when the expected utility is ...

ignou kul December 30, 2023

Blog

Do you think that a risk-averse individual gamble or will a risk lover purchase insurance? Explain your answer

A risk-averse individual is more likely to purchase insurance, while a risk lover might be inclined towards gambling. Buy MEC-101 ...

ignou kul December 30, 2023

Blog

There are two firms 1 and 2 in an industry, each producing output Q1 and Q2 respectively and facing the industry demand given by P=50-2Q, where P is the market price and Q represents the total industry output, that is Q= Q1 + Q2. Assume that the cost function is C = 10 + 2q. Solve for the Cournot equilibrium in such an industry

In a Cournot duopoly, each firm determines its output level taking the output of the other firm as given. Buy ...

ignou kul December 30, 2023

Blog

Do you agree that by paying higher than the minimum wage, employers can retains killed workers, increase productivity, or ensure loyalty? Comment on the statement in the light of efficiency wage model

Yes, the statement aligns with the efficiency wage model. Buy MEC-101 Pdf Get the full solved assignment PDF of MEC-101 ...

ignou kul December 30, 2023

Blog

Differentiate between Cooperative and non-cooperative game theory

Cooperative Game Theory: Buy MEC-101 Pdf Get the full solved assignment PDF of MEC-101 of 2023-24 session now. Definition: Cooperative ...

ignou kul December 30, 2023

Blog

Suppose the demand for a product is given by p=d (q)=−0.8q+150 and the supply for the same product is given by p=s(q)=5.2q For both functions, q is the quantity and p is the price. Find out producer surplus and consumer surplus

To find the producer surplus and consumer surplus, we need to understand their definitions and then calculate them based on ...

ignou kul December 30, 2023

Blog

How is Cournot’s model of oligopoly different from Bertrand’s model of oligopoly

Cournot's model and Bertrand's model are two different approaches to modeling oligopoly behavior, and they make different assumptions about how ...

ignou kul December 30, 2023

Blog

“In real world, sometimes it is not possible to achieve optimum welfare.” Comment and discuss the obstacles in attaining Pareto optimum

In the real world, achieving Pareto optimality, or optimum welfare for all parties involved, faces several practical obstacles. Buy MEC-101 ...

ignou kul December 30, 2023