ECO402 Midterm Current Papers VU Fall 2011 (www.vusolutions.com)

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ECO402 Midterm Current Papers VU Fall 2011 (www.vusolutions.com)

Define the Diminshing Marginal Utility & Equi-Marginal Utility3

When do the economics of scope exits? Spout your answer with the help of Example. Hw can u measure the degree of economics of 

scope? Explain with the help of Formula. 5

A. How do we calculate the user cost of capital?
B. Why isocost lines are straight lines? 5

Define risk neutral and explain it with graph 3
Difference between diminishng margnal utility and equi margnal utility? 3
Discuss the different preferences toward risk with the help of examples? 5
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