Find the competitive equilibrium of good exchange

Assignment Help Econometrics
Reference no: EM13244335

Consider a 2 good exchange economy with 2 consumers. Consumer A'spreference is u(x1,x2) = lnx1 + ln x2. B's preference is represented by U(x1,x2) = 2 ln(x1) + ln (x2). Suppose the initial endowments are (5,7) for A and (10,8) for B. Find the competitive equilibrium.

Reference no: EM13244335

Questions Cloud

By how much would the demand for imported tv sets : (1) the price of TV setsincreases by 4% in Japan, (2) the dollar depreciates by 5% withrespect to the yen, (3) the consumers' incomes in the U.S.increase by 3%, (4) the price of elasticity of demand for importedTV sets in the U.S. is -1.5
Procurement at the product conceptualization stage : Various specialists to ensure all procurement needs are met. In line with your debate, involving suppliers as those specialists in related area of procurement at the product conceptualization stage
Draw a free-body-diagram of the pith ball : A 100 mg pith ball hangs by a thread in the center of a parallel-plate capacitor. The capacitor plates are 5.0 cm x 5.0 cm, Draw a free-body-diagram of the pith ball
How many of each shouldthe jeweler order to maximize profits : The profit on a gold necklace is $15 and the profit on the goldbracelet is $25. A jeweler's showcase has room for at most 60necklaces and bracelets combined. The demand for the necklaces isat least 3 times the demand for bracelets.
Find the competitive equilibrium of good exchange : Consider a 2 good exchange economy with 2 consumers. Consumer A'spreference is u(x1,x2) = lnx1 + ln x2. B's preference is represented by U(x1,x2) = 2 ln(x1) + ln (x2). Suppose the initial endowments are (5,7) for A and (10,8) for B.
Find the temperature of the hot filament : A certain lightbulb has a tungsten filament with a resistance of 19.1 ? when at 20.0°C and 139 ? when hot, Find the temperature of the hot filament
What type of demand curve does perfectly competitive firm : The state of Maine has a very active lobster industry, whichharvests lobsters during the summer months. During the rest of theyear, lobsters can be obtained from other parts of the world but ata much higher price.
Find the number of unemployed workers : Ellen is downloading labor marke data for the most recentmonth, but her connection is slow and so far this is all she hasbeen able to get: UnemploymentRate: 5.0% ParticipationRate: 62.5% Not in the labor force: 60mil..
Find the minimum runway length : a jetliner is moving at a speed of 270 km/h. the plan then decelerates at 4.5 m/s2. what is the minimum runway length on which this aircraft can land

Reviews

Write a Review

Econometrics Questions & Answers

  Will a consumer ever purchase exactly eight bottles of wine

A common marketing tactic among many liquor stores is to offer their clientele quantity (or volume) discounts. For instance, the second-leading brand of wine exported from Chile sells in the United States $8 per bottle if the consumer purchases up..

  Determine the interest rate gene paid on yearly compounding

Gene Milton borrowed a sum of $5,000 from his uncle Ben and after three years paid a sum of $5,000 and paid another $1,000 after 4 years to pay off the loan. Determine the interest rate Gene paid it the payments were based on yearly compounding.

  Determine how will the growth in gdp change

Suppose GM reduces all of its existing workers from a 50 hour work week to a 40 hour work week but does not lay anyone off or hire anyone new. How will the unemployment rate change as a result How will the growth in GDP change

  What is the marginal propensity to consume in the economy

At an initial point on the aggregate demand curve, the price level is 100, and real to GDP is $15trillion. After the price level rises to 110, however, there is an upward movement along the aggregate demand curve, and real GDP declines to $14 tril..

  What sales volume would be required in order to meet goal

A group of venture investors is considering putting money into Lemma Books, which wants to produce a new reader for electronic books. The variable cost per unit is estimated at $250, the sales price would be set at twice the VC/unit, or $500

  Calculate the price and quantity for the monopolist

Treating the marginal cost curve as the "supply curve" and using the given demand curve, what price and quantity would a competitive market give. Now, calculate the price and quantity for the monopolist.

  Find gross value added

Import Duty-1000  Excise Duty-1000 Outpout sold- 5000 Price per unit of output- 6 Change in stock-600 Intermediate Cost- 16,000 Subsidy-500

  Determine the pauls production possibility frontier

Paul can make either "100 bottles of wine and 0 boxes of chocolates" or "0 bottles of wine and 1600 boxes of chocolates" or a combination of wine and chocolates. For parts of this question assume that Paul's PPF reflects the property of constant o..

  Are there cost complementaritites in producing products

A multiproduct firm's cost function was recently estimated as C(Q1, Q2) = 75 - 0.25Q1Q2 + 0.1Q1^2 + 0.2Q2^2 a. Are there economies of scope in producing 10 units of product 1 and 10 units of product 2 b. Are there cost complementaritites in producing..

  Determine the output and price under a cournot equilibrium

Consider a market for a homgeneous product with demand given by Q = 37.5 - .25P. There are two firms, each with a constant marginal cost equal to 40. a. Determine the output and price under a cournot equilibrium.

  Why would the firm want to exit the industry

Suppose that demand is perfectly inelastic at 40 million bags, so that consumers demand 20 million bags no matter what the price is. What price should you charge if you want the firm to earn only a fair rate of return Assume as always that TC incl..

  How much would be produced if this was a competitive market

A monopolist faces demand given by: P = 100 - 0.4Qd, and has marginal costs given by MC = 10 + 0.2Q a. draw the demand, marginal revenue and marginal cost curves. Calculate and show how much this firm will sell and what they will charge.

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