Pareto optimal allocation of resources

Assignment Help Business Economics
Reference no: EM132290574

A small economy has only two consumers, Harold and Irene. Harold's utility function is U(x, y) x+ 50y^1/2. Irene's utility function is U(x, y) x+ 5y. Harold is endowed with 500 units of x and 60 units of y. They make trades to reach a Pareto optimal allocation of resources in which both persons consume positive amounts. How much y does Harold consume?

Reference no: EM132290574

Questions Cloud

Discuss the implications of the rapid economic rise of china : Can you please help me discuss the implications of the rapid economic rise of China, India, and the Association of South East Asian Nations (ASEAN)
Why do companies seem to mislead viewers : Why do companies seem to mislead viewers into buying their product? Provide examples you have encountered in misleading viewers?
How will this acceptance of fake news impact our democracy : Choose a news article from a reputable media outlet and compare it to an online story that you know is fake.
How can the economic order quantity : How can the Economic Order Quantity affects inventory for surpluses and shortages as well as discounts.
Pareto optimal allocation of resources : Pareto optimal allocation of resources in which both persons consume positive amounts. How much y does Harold consume?
Price elasticity of demand : Price elasticity of demand is equal to -2.25. If the manager increase the price by 9%, the manager predicts the quantity demanded will increase or decrease
Reach an agreement on price and quantities : Now put antitrust issues aside. Assume that the firms reach an agreement on price and quantities. Do you expect the firms to abide by their promises?
Provide a brief overview of both ethnic communities : SWTP634 - Cross Cultural Social Work - Australian Catholic University - Provide a brief overview of both ethnic communities, their demographic and linguistic
Advertising expenditures in the united states : In 2014, advertising expenditures in the United States were?

Reviews

Write a Review

Business Economics Questions & Answers

  Political campaign manager must decide whether to emphasize

A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters in a reelection campaign.

  Rent seeking and weak incentives for operational efficiency

Explain factors that weaken the case for the public sector action such as: the special interest, the shortsightness effect, rent seeking, and weak incentives for operational efficiency.

  How is this different from a firm engaged in perfect

What takes place to a firm in monopolistic competition when it increases its price? How is this different from a firm engaged in perfect competition?

  Result in the same magnitude of deadweight loss

Suppose the government imposes a price ceiling of $50 on a market characterized by the following information: Qd=700-2p Qs=100+4p Calculate the magnitude of deadweight loss form the price ceiling. Find a price floor that will result in the same magni..

  Five values for different types of elasticity

Here are five values for different types of elasticity. (The numbers have been calculated for each case/market using the elasticity methods from your textbook).

  Explain how much output is the frim producing

A firm employs 8 units of the variable resource. at this level of employment, average product is 2, and average variable cost is $4. Explain how much output is the frim producing.

  A business in a monopolistically competitive industry

A business in a monopolistically competitive industry...

  When moving up along the production function

When moving up along the production function, the marginal product of capital will:

  Relatively poorer segment of the population

You can take either side but make sure to substantiate your thought with references.

  Often applied to hold price of housing to reasonable level

In tight housing markets rent controls are often applied to hold price of housing to a reasonable level. How does this policy affect the relative gains of tenants and landlords and the allocative function of prices— (answers) it prevents landlords fr..

  Qsuppose the inverse demand function for an industry is p

q. suppose the inverse demand function for an industry is p 9 - q20. the cost function for the industry is c 10 10q

  Probable justification for each of aspects of the tax law

Discuss the probable justification for each of the following aspects of the tax law

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