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Consider a two person, two commodity pure exchange economy, with:U q q,U q q q q qand q q q Derive the contract curve as an implicit function of q and q.
a) What condition on the coefficients and ß will ensure that the contract curve is a straight line?
b) Explain the basic tenets of Rawl's theory of justice.
The company is the low-cost provider of insurance in this market with fixed costs of $20 million per year, plus variable costs of $500 for each driver insured on an annual basis.
Assume an open, mixed economy (C+I+G+X=real GDP) and an MPS of .4. Would it be expansionary, contractionary, or useless to the economy to increase government expenditures by $30 billion and also increase taxes by $30 billion.
Aunt Jane's Fitness Center is planning to utilize price discrimination to set its family and corporate rates. For a family membership, it's estimated demand curve is Qf = 984 - 20Pf For the corporate market its estimated demand curve is Qc = 2,070..
Do you believe in strict cultural relativism, or do you think anthropologists should pass judgments? Is there a middle ground in this debate, and if so, under what circumstances and using what criteria would you draw the line between the two sides..
Suppose a country has a money demand function ( M/ P)^d = kY, where k is a constant parameter. The money supply grows by 12 per year, and real income grows by 4 percent per year.What is the average inflation rate
The local smog control district has agreed to pay to the firm a lump sum of money to provide for the first cost of the equipment and maintenance during its 10-year useful life. At the end of 10 years the equipment, which initially cost $10,000, is..
quantity of Chrysler Crossfires sold annually, PC is the price of a Chrysler Crossfire, M is average household income, PBMW is the price of BMW's 330i sports sedan, and PP is the price of Porsche's Boxster S sports car. The marketing team at Chrys..
Based on this example, discuss when price discrimination is likely to be socially useful and when it does not have much to recommend it.
Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate (given in decimals, e.g., 0.02 or 0.05) The standard error of each estimated coefficient is given in parentheses below it. Also, th..
A pallet recycler has offered to purchase pallets, which are of certain sizes and in good condition. The pallets that are in these sizes and in acceptable condition amount to half the scrapped pallets. The pallet recycler is offering to pay $1.00 ..
Danny "Dimes" Donahue is a neighborhood's 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $2 each, he sells 250. At a price of $1.5 each, he sells 300. What is the elasticity of th..
Stock prices subsequently decreased. Discuss how this might have affected consumption.
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