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Most lectures teach the relationship between the CES, Cobb-Douglas, and Leontief functions using the value of elasticity of substitution, namely, in the discrete object model. This lecture note aims at being a reference for algebraic computations of the Leontief and Cobb-Douglas functions by...
Persistent link: https://www.econbiz.de/10014197179
The standard textbook description of relationship between the LRMC and the SRMC for output levels below the optimum for a particular plant size is typically misleading and imprecise. Students are frequently confused as to how the SRMC can ever be below the LRMC since everything is variable in...
Persistent link: https://www.econbiz.de/10014199550
Despite its critical importance in the theory of the firm, marginal cost is unobservable in most production settings. Most cost accounting practices substitute average cost estimates for the unobservable marginal cost; moreover, some cost accounting measures include fixed costs as a component of...
Persistent link: https://www.econbiz.de/10014217801
It is well known that Mathematical Programming techniques are well-developed and with widespread application. It would be useful for researchers and practitioners in the information systems field to have a categorization that would show the types of problems that have been solved using these...
Persistent link: https://www.econbiz.de/10014153774
The “flipped classroom” has begun to revolutionize the way that students receive information from their teachers and is ushering in a new era of active and creative thinkers. Although flipping the classroom has gained a great deal of popular attention in magazines and blog posts by education...
Persistent link: https://www.econbiz.de/10014155161
Italian Abstract: L'obiettivo di questo capitolo è il rapporto tra la funzione di costo, che stilizza le ipotesi sui rendimenti di scala, e la funzione d'offerta dell'impresa concorrenziale, singola e aggregata. Useremo la teoria microeconomica standard della produzione allo scopo di...
Persistent link: https://www.econbiz.de/10014159703
This paper uses both a geometrical and mathematical analysis to explain monopolistic third-degree price discrimination, and it also shows how price discrimination affects society. A frequent policy question in the price discrimination literature is whether to allow third-degree price...
Persistent link: https://www.econbiz.de/10014078592
Hedging of illiquid financial instruments is carried out with liquid instruments that, as a rule, have simpler payoff functions. For example, hedging of Asian or long-dated put options is carried out with vanilla puts, hedging of Bermuda swaptions is done with vanilla swaptions, etc. This kind...
Persistent link: https://www.econbiz.de/10013000625
Under the CAPM assumptions, the market capitalization weighted portfolio is mean-variance efficient. In real world applications it has been shown by various authors that low risk portfolios outperform the market capitalization weighted portfolio. We revisit this anomaly using high-frequency data...
Persistent link: https://www.econbiz.de/10013030547
The objective of this manuscript is to provide a simple guide to instructors and students on how to solve and simulate a discrete-time specification of the Life-Cycle/Permanent-Income Model of Consumption and Saving (LCPI Model) using only algebra and basic calculus. The solution and simulation...
Persistent link: https://www.econbiz.de/10013035580