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Numerical - RN Institute
Numerical - RN Institute

... (IV) If new demand of commodity ‘A’ is 84 units, then calculate its original demand. (v) Determine the price elasticity by ‘Total Expenditure Method’. (vi) Whether price elasticity of demand calculate in (i) and (v) give the same answer? 13. If the price of X is Rs2 and the elasticity of demand is ...
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... get 2 extra pounds of tomatoes, or 60 cents in extra revenue, which more than covers the 50-cent cost of the extra pound of compost. But adding the fifth pound of compost gives only 1 extra pound of tomatoes, so the corresponding revenue increase (30 cents) is less than the cost of the compost. You ...
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Perfect competition

In economic theory, perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say for commodities or some financial assets, may approximate the concept. As a Pareto efficient allocation of economic resources, perfect competition serves as a natural benchmark against which to contrast other market structures.
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