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Decision Making under Risk and Uncertainty
DEMAND THEORY ANALYSIS AND ESTIMATION
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advertising expenditures attributes average cost average variable cost bid price buyers calculated capital cash flows ceteris paribus Chapter coefficient Company competitive consider constant constraint consumer consumer's contract contribution cost curve criterion decision alternative decision maker demand curve demand function derived discount rate effect elasticity of demand entry equal estimate example expected value factors Figure firm forecast future higher income increase incremental costs independent variables indicate indifference curve inputs investment isocost isoquant labor linear marginal cost marginal revenue market share markup rate maximize oligopoly optimal outcomes output level overhead particular penetration price percent period plant predict present value price discrimination price elasticity price level problem profit-maximizing price profits promotional purchase quantity demanded reduced regression analysis relationship relatively risk rivals search costs shift short-run shown slope strategy substitutes supplier tion total revenue units utility