Competitive Equilibrium, Public Economics

Assignment Help:
Alice and Bob survive on hamburgers and salads. Aliceís utility function is

UA = hA(sA 1)

where hA and sA are her consumption of hamburgers and salads respectively. Bobís 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.

Related Discussions:- Competitive Equilibrium

Determine the natural rate of unemployment, Suppose the firm mark up over t...

Suppose the firm mark up over the cost is 10% and the wage setting equation is W=P (1-u) where U is the unemployment rate. a) Find out the real wage rate implied by the price se

Long run demand and factor substitutability, Suppose there are two inputs i...

Suppose there are two inputs in the production function, labor (L) and capital (K), which can be combined to produce Y units of output according to the following production functio

Provide individuals with various ways of controlling , Basic floor plan: T...

Basic floor plan: There are no security guards on duty at any given time. There are three ATM's on site but none of them can see who comes and goes through the building. Cameras a

Case for the market - pigovian analysis, Case for the Market   With  th...

Case for the Market   With  the objective of maximising total value of output  focused on  observing real  factors of production, through the  logical  'tool  of marginal produ

Informal regulations on pollution, Normal 0 false false fal...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Environmental sustainability problem, Sustainability, more recently referre...

Sustainability, more recently referred to as ‘sustainable development', came from the idea of integrating economic development and environmental protection. The concept is based on

Overcome the barriers of having access to government data, QUESTION (i)...

QUESTION (i) "Public Sector data is seen as owned by everyone since it has been gathered about and from everyone, often compulsorily". Discuss the concepts of ‘Public data' whe

Bmbb, examples of inductive method in economics

examples of inductive method in economics

Privatisation, critically examine the statement that privatization can alwa...

critically examine the statement that privatization can always decentralize economic power

Why does government undertake an economic activity, Q. Why does government ...

Q. Why does government undertake an economic activity? If ever an activity has large externality or spill over and includes a large number of people, it may be found better th

Write Your Message!

Captcha
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