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Both ‘utility analysis’ and ‘indifference curves analysis’ use introspective method or psychological approach to explain consumer’s behaviour and demand.Theory, propounded by Prof. PA. Samuelson, attempts to explain consumer’s behaviour and consumer’s demand on the basis of observed market behaviour of the consumer in different price-income situation.Thus, the revealed preference theory provides behaviouristic explanation of consumer’s demand. ADVERTISEMENTS: The revealed preference theory is based on the following concepts or elements: (i) Ordinal utility: According to Prof. Samuelson utilities are merely comparable and not quantifiable. It means it is based on the concept of ordinal utility. Image Source : pa211sw.communityos.org (ii) Preference hypothesis: It means when a consumer chooses a particular combination of goods, say P, out of various combinations available to him in a given price-income situation, then he reveals his…

Fixed costs remain constant in total regardless of changes in volume of production and sales, upto a certain level of output.There is an inverse relationship between volume and fixed costs per unit. If volume of production increases, the fixed costs per unit decrease.Thus, total fixed costs do not change with a change in volume but vary per unit of volume inversely. Variable costs vary in total in direct proportion to changes in volume. Image Source : longtermcarenow.com ADVERTISEMENTS: An increase in the volume means a proportionate increase in the total variable costs and a decrease in volume results in a proportionate decline in the total variable costs. There is a linear relationship between volume and variable costs. They are constant per unit.Many costs fall between these two extremes. They are…

From DateTo The Divisional Engineer (Telegraphs),Re: Surrendering of my telephone No. ____________ ADVERTISEMENTS: Dear Sir,This is to inform you that my services have been transferred to____________ and accordingly I have to vacate the above rented house on____________ where the telephone No. ___________ has been installed. Under the circumstances, when I will not be needing the telephone connection at my residence any longer, I have no alternative but to surrender the same.I would, therefore, request you to arrange to take out the telephone instrument together with its accessories from my residence after disconnecting the line latest by ____________ and refund me the security deposit kept with your department before I proceed on transfer. ADVERTISEMENTS: Thanking you,Yours faithfully, (Your Name) Image Source: 9p5z91rxsag1usgoc1ctvupb.wpengine.netdna-cdn.com

To The S.D.O. The Public Water Supply Co. (Place Name)Sir,Our colony is suffering from a grave water shortage. Many residents do not have, even a bucket of water in the morning before going to work. ADVERTISEMENTS: Drinking water too is in short supply for the last one week and the water from the general supply, even when boiled, is not hygienic.Kindly send your staff to check the water pipe lines, which may be blocked and have them cleared. Thanking you,Yours sincerely, (Your Name) (Address) Image Source: static.dnaindia.com ADVERTISEMENTS: