Table of Contents
What are discrete goods in economics?
Some products such as automobiles, houses, personal computers, and major appliances are indivisible, so a consumer must typically buy these products in whole (usually large) units. The demand for such products is called discrete because the quantity demanded jumps up by whole units as the price drops.
What are non discrete goods?
Non-Discrete Parts are Part Records that can have any quantity larger than zero. It is best to use the ‘Non-Discrete’ option on the Part Definition if you have parts that do not need individual traceablity or if you want trace batches of parts. Some examples: A batch of glue.
What are concave preferences?
The shape of indifference curves depends upon the preferences of the individual. There are two broad classes, convex and concave. Indifference curves are convex if the individual likes to consume the two goods together. They are concave if the individual prefers to consume them separately.
What are the properties of well behaved preferences?
A preference relation is “well-behaved” if it is monotonic and convex.
What are Cobb Douglas preferences?
Cobb-Douglass preferences are one of the simplest algebraic representations of well-behaved preferences. 2. Cobb-Douglas Preferences. Assume the consumer’s utility function is given by: u x1,x2.
What does weakly preferred mean?
– If a consumer prefers or is indifferent between two bundles, we say that he weakly prefers one to other.
What is discrete and non discrete?
Discrete data is information that can only take certain values. This type of data is often represented using tally charts, bar charts or pie charts. Continuous data is data that can take any value. Height, weight, temperature and length are all examples of continuous data.
What is the meaning of non discrete?
nondiscrete (not comparable) Not discrete mathematically. quotations ▼ Not divided into discrete parts.
Is Leontief convex?
Since Leontief utilities are not strictly convex, they do not satisfy the requirements of the Arrow–Debreu model for existence of a competitive equilibrium. Indeed, a Leontief economy is not guaranteed to have a competitive equilibrium.
Are bads convex?
Indifference Curves between: Goods, Bads and Neuters (with curve diagram) Indifference curves between two commodities which are “goods” slope downward and are convex to the origin. However, when for a consumer a commodity is a bad’ that is undesirable object, the more of it will lower his satisfaction.
Are preferences convex?
Preferences are convex if and only if the corresponding utility function is quasi-concave. Assume preferences satisfy completeness, transitivity, continuity and monotonicity.
What does diminishing Mrs mean?
Usually, marginal substitution is diminishing, meaning a consumer chooses the substitute in place of another good, rather than simultaneously consuming more. The law of diminishing marginal rates of substitution states that MRS decreases as one moves down a standard convex-shaped curve, which is the indifference curve.
What is a discrete good in economics?
Thus, discrete good is one that can be bought and sold only in integer units. Some products such as automobiles, houses, personal computers, and major appliances are indivisible, so a consumer must typically buy these products in whole (usually large) units.
What is an example of a discrete demand?
Some products such as automobiles, houses, personal computers, and major appliances are indivisible, so a consumer must typically buy these products in whole (usually large) units. The demand for such products is called discrete because the quantity demanded jumps up by whole units as the price drops.
Is sugar a discrete or continuous good?
But, I can’t purchase 1.5 car. Thus, a car is a discrete good. On the other hand, I can purchase sugar can be consumed in fractions too. For example, I can purchase 1kg, 1.5kg, 1.5234kg (Imagine Gold!) and so on. Hence, Sugar is a continuous good. Thus, discrete good is one that can be bought and sold only in integer units.