Welfare analysis, Microeconomics

Welfare Analysis

1-Of the following four institutions for allocating apartment to different people at different prices

  i.  The competitive market

 ii.  A discriminating monopolist

 iii. An ordinary monopolist

 iv. Rent control

a. Which one of the above four institutions are best and why? (In answering this question you need to define what is socially "good". This is not easy. Your primary guidance is your gut feelings however before you express your feelings to others you need to rationalize them and make them defensible. Pareto optimality is often used by a number of economists to discern various social states. )

b. Can you think of a situation where your answer in (a) is no longer your preferred institution?

c. Are your answers in (a) and (b) objective and value free? Explain. 

2- Consider a society in which a few people have everything and a great many of them have virtually nothing something like slavery, evaluate this society in terms of Pareto efficiency.

Posted Date: 2/23/2013 6:12:08 AM | Location : United States







Related Discussions:- Welfare analysis, Assignment Help, Ask Question on Welfare analysis, Get Answer, Expert's Help, Welfare analysis Discussions

Write discussion on Welfare analysis
Your posts are moderated
Related Questions
Nonmetals tend to gain electrons. A-Metals tend to lose electrons. B-Atoms have the natural tendency to C-fill their outermost shells. All of the above. D-


Valence Bond Theory Explains, but does not predict the shape. Valence Bond Theory Cannot explain colour and spectra. Valence Bond Theory Qualitative explanations; does not expl

Long Run Average Cost (or LAC) -Constant Returns to Scale If the input is doubled, the output will double and average cost is constant at all the levels of output.

Suppose that a firm’s production function is given by Q=30L-3L2, where L is labor input and Q is the output. a) Derive and draw the firm’s demand for labor while the firm’s produ

fig2.3 elaplanition of sales maximisation


Discriminatory Fee Structure This method discriminates between courses and the economic condition of the family to which the student belongs. The cost of providing the educati

Problem: i) What might be the possible causes of inflation according to economic theory? ii) Taking stable prices and full employment as two macroeconomic objectives of gov

(a) Suppose Scientists discover that eating soybeans prevents cancer and heart disease.