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Consider the model analyzed in Section 13.4.
(a) Show that the allocation described in Proposition 13.6 always involves finite utility and satisfies the transversely condition.
(b) Show that in this model there are no transitional dynamics.
(c) Characterize the Pareto optimal allocation, and show that the equilibrium growth rate in Proposition 13.6 is less than the growth rate in the Pareto optimal allocation.
Derive the trade balance equation (19.34) from the capital market clearing equation (19.26).
Suppose there is a boombox market that has the following demand curve: P=400-20Q and there are N firms, each with a marginal cost of 30. How many firms must there be for the cournot equilibrium price to go below 40
hurricane delayed the cash inflows that the managers of firm metro expected from a project that being built and
What are the possible reasons for the price rise mentioned in the news article? Use one demand and supply model to illustrate how bird flu and Christmas season influence the equilibrium price and output in the egg market.
Prove that (10.25) implies the existence of a relationship between physical and human capital of the form h = ξ(k), where ξ(.) is uniquely defined, strictly increasing, and differentiable.
An economy can produce a maximum of either 28 million tons of wheat or 7,000 automobiles, or various intermediate quantities, as depicted in the table below: Wheat (millions of tons) A=28,B =27,C= 25,D= 22,E =18,F= 13,G= 7,H =0 Automobiles (thousa..
which requires at $10,000 license fee to use their design. Tooling costs $5000. Materials and consumables (cutting fluids, milling cutters, power, etc) are budgeted at $40 per product. Your company applies an overhead rate of 25% on all direct cos..
Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable..
The following data are collected for a computer manufacturer company: Quantity Price per unit Total cost of production 0 $225,000 $200,000 1 225,000 250,000 2 175,000 275,000 3 150,000 325,000 4 125,000 400,000 5 90,000 500,000.
In a perfectly competitive industry, the marketprice is $25. A firm is currently producing 10,000units of output, its average total cost is $28, itsmarginal cost is $20, and its average variable costis $20.
In its most recent financial statements, Newhouse Inc. reported $50 million of net Statement of income and $810 million of retained earnings. The previous year, its balance related earnings sheet showed $780 million of retained earnings.
greener grass company ggc competes with its main rival better lawns and gardens blg in the supply and installation of
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