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Government consumption in our model is simply a "waste", that is it does not affect anyone's utility or affect the production process. Use the Pareto Optimality framework. For each of them,solve the social planner's problem and show the equations that characterize the optimal allocations.Then argue how a change in G would affect the choices (consumption , labor supply and also output) by the social planner.
a. Government expenditures increase household's utility by anotherterm in the utility function : log (G).
b. Government expenditures add to the existing private capital stock, so the capital stock of firms is now K+G.
Assume you are a business person with an opportunity to make more money by meeting with competitors and fixing prices, conduct which is illegal. The authorities will not discover that the prices have been fixed. In fact, the price rise could be sm..
Suppose there are 9 firms in the photographic film industry with corresponding market shares as given in the table above. Under present merger guidelines with respect to industry HHI and the change in HHI resulting from a merger
Illustrate what effect a contractionary fiscal policy have on the price level and real GDP.
Illustrtae what are the advantages and limitations of International Trade identified in the simulation.
Critically discuss that there is no satisfying theory that explains the behavior of firms in oligopoly markets. Which theories should I include in the analysis and give some examples relevant to these theories?
suppose you are a painter and the price of a gallon of paint increases from 3.00 a gallon to 3.50 a gallon. your usage
When McDonald's Corp. reduced the price of its Big Mac by 75 percent if customers also purchased French fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U.S. sales growth.
Compute the total cost of providing this insured service to the plan before and after the change in coverage.
Assume an employer offers a base wage of twenty dollar per hour for the 1st 40-hours of a work each week and overtime pay of thirty dollar per hour for any hours beyond forty per week,
Explain how will these events impact the equilibrium price and quantity of generic soft drinks.
What is the excel formula for Modified Accelerated Cost Recovery system (MACRS) depreciation? Initial cost 12,000 Salvage price 600
The value of a home depends in part on how attractive other homes and yards in the neighborhood are. How do local zoning ordinances try to promote land uses that generate external benefits for neighbors?
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