Expenditure minimisation Study guides, Revision notes & Summaries

Expenditure Minimisation and Duality: Whereas the consumer maximization problem is about solving the problem of maximizing utility subject to a budget constraint, expenditure minimization is about minimizing the cost of achieving a given utility level. You will see that utility maximization and expenditure minimization are just two ways of solving the same problem.

Profitability- COST CONTROLS - ANS-3 year cutting cost program ending in 2017: cut 5,000 jobs. sold planes/delayed delivery, froze wages —> 2019 generated record earnings allowing shareholders to receive dividends Reducing fixed costs - restructuring management and employment relations to improve efficiency of rostering system - implementing more technology for long term cost gains to minimise waste Reducing variable costs - fuel conservation - cutting commissions to travel agen...

Optimal choice: Which of the affordable bundles will the consumer choose? How does a consumer choose in order to maximise utility subject to her budget constraint? The Lagrange method and Demand functions: The mathematical method used to solve for a consumer's optimal bundle. Demand functions are functions that relate the optimal choice - the quantities demanded - to the different values of price and income. Expenditure Minimisation and Duality: Whereas consumer maximisation problem is about ...

Q. Which objective of documentation is fulfilled when documents ensure thoroughness and consistency of action, thus allowing a company to function more efficiently and effectively? - Answer- Organizing. B is correct. Organising is the objective of documentation that is fulfilled when documents ensure thoroughness and consistency of action, thus allowing a company to function more efficiently and effectively. A is incorrect because educating is achieved when documents inform or provide instructio...