division of output between factories
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Division of Output between Factories

The division of output between two factories is a case in which you have two factories; an older factory with a higher Marginal Cost and a newer factory with a lower Marginal Cost. To determine how much each factory should produce, you have to draw a horizontal Price/Demand line across the two graphs (of the old and new factory)....
oil will we ever run out
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Peak Oil: Will We Ever Run Out?

As oil becomes scarcer, and as the Laws of Demand tell us, the price of oil will continue to rise. To combat this, on the demand side, we can try to find substitutes to use instead of oil. While on the supply side, we can either try to find more reserve or come up with more substitutes. We would only...
risk strategies for farmers
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Risk Strategies for Farmers in Developing Economies

Ex-ante strategies prevent or reduce risk like savings. While ex-post or risk coping strategies cope up with risk like dis-savings. These are two types of risk strategies for farmers to mitigate risk outcome. Factors such as weather, rainfall, pests and diseases hitting crops, irrigation can alleviate some income risk. Aggregate shocks are problems that affect everyone in the village. They are not unique...
the decoy effect
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The Decoy Effect

The decoy effect or asymmetric dominance effect is the phenomenon whereby consumers will tend to have a specific change in preferences between two options when also presented with a third option that is asymmetrically dominated. The Decoy Effect An option is asymmetrically dominated when it is inferior in all respects to one option. However, in comparison to the...
Introduction to Pharmacoeconomics
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Introduction to Pharmacoeconomics

Medications are the most widely used clinical intervention. The U.S. spends more on medications per capita than any other country but hasn’t been able to show better outcomes. Pharmacoeconomics refers to the scientific discipline that compares the value of one pharmaceutical drug or drug therapy to another. It is a sub-discipline of health economics. To...
decision fatigue
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Decision Fatigue

Decision fatigue refers to the deteriorating quality of decisions made by an individual, after continuously making decisions. It is now understood as one of the causes of irrational trade-offs in decision-making. Decision fatigue may also lead to consumers making poor choices with their purchases. Effects of Decision Fatigue 1. Reduced ability to make trade-offs A...

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