Alice utility function

Assignment Help Microeconomics
Reference no: EM13325074

Alice and Bob survive on hamburgers and salads. Alice's utility function is
UA = hA(SA -1)
where hA and sA are her consumption of hamburgers and salads respectively. Bob's utility function is
UB = [(hB-1)^2]sB
where hB and sB are his consumption of hamburgers and salads respectively. Let p be the price of hamburgers measured in salads. Alice is endowed with one salad and two hamburgers. Bob is endowed with six salads and two hamburgers. Find the competitive equilibrium.

Reference no: EM13325074

Questions Cloud

Explain the solubility of sugar crystals : As water is warmed, the solubility of sugar crystals in it *increases *decreases *remains constant *Fluctuates randomly
Locate the final image of the stamp : A converging lens (f = 10.8 cm) is located 32.9 cm to the left of a diverging lens (f = -6.06 cm). Locate the final image of the stamp relative to the diverging lens
List the networking and commination devices required : discuss in about 500 words, if the centre and the patients are going to benefit from the planned NBN. You need to discuss the advantages and disadvantages both.
Explain the general form of an indicator equilibrium : Write the equation for the general form of an indicator equilibrium. Underline the form of the indicator in acidic solution, and circle the form of the indicator that is in largest concentration in basic solution
Alice utility function : Alice and Bob survive on hamburgers and salads. Alice's utility function
Compute the magnitude of the charge on each : The electric field midway between two equal but opposite point charges is 672N/C , What is the magnitude of the charge on each
Explain partial pressure of carbon dioxide is increased : The solubility of CO2 in water will increase when which condition is applied? * The Temperature is raised * Partial pressure of carbon dioxide is increased * Partial pressure of carbon dioxide is decreased
What is the server ip address : Discuss the difference in your answers to parts f) and g). You need to consider the packets formats in your discussion.
Purchase a particular item from a potential supplier : ABC Company would like to purchase a particular item from a potential supplier. ABC does not know the supplier's specific cost structure for producing this item, but hope to estimate the cost using some information gathered from the supplier. ..

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain what is meant by diminishing returns

Explain what is meant by diminishing returns. From these costs curves explain when diminishing return sets in? Why and explain the relationship between ATC, AVC and AFC.

  Identify the four major tools of monetary policy

Do protectionist policies benefit producers, consumers, workers, or the government? Explain.b) Explain how the "Buy American" theme hurts Americans. a) Identify the four major tools of monetary policy.

  Determine impact of govt regulation against patent trolls

The IT industry is full of patents. There are some companies, referred to as patent trolls, whom purchase these patents in hopes of making money by enforcing patents against alleged infringers. Determine the impact of government regulation

  Find the depreciation rate and population growth

A country is described by the Solow Model with a production function y = k1/2 where y is output per worker and k is capital per worker. Now suppose that the fraction of output invested (or saved) is 50%.

  Price discrimination to maximize profits

How does knowledge of value elasticity between different groups of consumers or for several products enable managers to price discriminate, change different prices for these groups?

  What could account for faster upward shifts

If interest rates or opportunity costs investment, happened to be the same in both developed countries and emerging economy nations, what could account for faster upward shifts in the latter group's planned investment functions Are stocks of produ..

  Is the good in question standardized

Choose a market for a good in your area that seems to be a perfectly competitive market. Write four or five substantive paragraphs that describes the market and answers the following questions: Identify the buyers and sellers as well as the goods o..

  Elasticity of demand

Price elasticity of demand, Income elasticity of demand and Cross elasticity of demand of toyota corolla car.

  Find the total revenue of the monopolist when it sells 6

Using a spreadsheet like the following, entering formulas for the total revenue and consumer’s surplus, and given the following demand curve of a consumer for a monopolist’s product Q = 14-2P (a) find the total revenue of the monopolist when it sells..

  What determinants affect supply

what determinants affect supply and what affect demand. Once you have drawn in your change, write a short explanation for each question discussing what would be the new equilibrium price and quantity levels because of this change.

  Merits and demerits of industrial ecosystem

Suppose you're a city planner working on new industrial park and contemplating the use of industrial ecosystem. Describe the major advantages and disadvantages of industrial ecosystem which you would consider in making your decision.

  Which countrys government is more heavily involved

Governments of country A and country B spend the same amounteach year. Spending on functions relating to dealing with marketexternalities and public goods accounts for 25 percent ofgovernment expenditures in country A

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd