Reference no: EM13891918
How would i solve, Macro Economics (Williamson 5e), Chapter 5: Mathematical Appendix, Problem #1
For the closed-economy, one-period model, suppose that
U (C, l) = ln (C) + β × l, and
F (K, N) = zK^αN^ (1−α) , where β > 0, and 0 < α < 1. Determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain your solutions. Also, in this problem, show that the competitive equilibrium allocation is Pareto optimal.
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Manufacturers mark-up necessarily represent profit
: Electrotech, a maker of household smoke detectors, buys resistors for its smoke alarms for $.15 each. The resistor manufacturer marks-up the resistors from $.10. Does the resistor manufacturer’s mark-up necessarily represent profit?
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Produces its monopoly quantity in equilibrium
: In a Stackelberg industry with identical firms we know that firm 1, the leader, produces its monopoly quantity in equilibrium. Given this, does the Stackelberg leader necessarily earn a higher profit than the Stackelberg follower? Explain.
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Part of its profit-maximizing policy
: Suppose that a monopolist has the ability to impose a two-part tariff pricing policy. Would it necessarily set a positive fee as part of its profit-maximizing policy? Explain. What would limit a monopolist’s ability to set such fees?
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Compute the total cost of lording and carrying flour
: A large bakery buys flour in 25-pound bags. The bakery uses an average of 4,900 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag. Compute the total cost of lordi..
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Determine consumption-employment-output and leisure
: Determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain your solutions. Also, in this problem, show that the competitive equilibrium allocation is Pareto optimal.
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Influenced by prominent economic theories of social welfare
: Demonstrate the ability to read, understand and assess how social insurance policies influence and are influenced by the prominent economic theories of social welfare.
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What is labor lands labor force participation rate
: Suppose the civilian no institutionalized working age population is 35.9 million in Labor land, 4.6 million are working part time, and 15.71 million are working full time. Labor land used the Bureau of Labor Statistics (BLS) definitions for unemploym..
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Developments of the major economic security programs
: Describe the historical and institutional developments of the major US economic security programs since the early 20th century and identify the major attempts to reform the system throughout the period.
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Gross domestic product equals
: Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:
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