Search & Filtering
Consider a competitive exchange economy: two agents (A and B) and two goods (X and Y). The utility function of the agent is given by u(xi, yi) = xiyi where i ϵ {A, B} and xi, yi are consumption of good X by agent i and good Y by agent i respectively. Agent A’s endowment of good X and Y are (1,1) and Agent A’s endowment of good X and Y are (2,1). Which of the following is a set of Pareto efficient allocations?
a) xA = 1, yA = 1 and xB = 2, yB = 1
b) xA = 1, yA = 0 and xB = 2, yB = 2
c) xA = 1.5, yA = 1and xB = 1.5, yB = 1
d) None of the above
Consider a profit-maximizing firm with the production function Y = K+L, where Y denotes the quantity of output, and K and L denote the amount of capital and Labour used. Suppose w is the wage rate for per unit of labor employed and r is the rent for per unit of capital. The cost function is given by
a) C(y) = min{w, r}*y
b) C(y) = y/min{w, r}
c) C(y) = (w + r)*y
d) None of the above
calculate the price elasticity of demand for a commodity when its price increase by 50% and quantity demanded falls to 240 units from 300 units
suppose the price of Good is 1 rupee and price elasticity of demand is 0.2, how much will 10% reduction in quantity demanded increase the price? what will be the new price?
Can u please email me because the question is on a picture , and i really need the answer
Suppose the demand function for a good is given as Qd= 90-3P and the supply function is given as Qs= 30+7P. Find the equilibrium price and equilibrium quantity for this good. Also, using a diagram, explain for what price there will be an excess supply and excess demand for this good in the market.
Discuss the benefits of allowing universities to charge higher tuition fees for some degree courses. (15 marks)
Evaluate whether government intervention is able to correct market failure in education. (20 marks)
Ronald's Outboard Motor Manufacturing plant production function is Ronald is investigating a new outboard motor manufacturing technique . Ronald believes that if he adopts the new technique , his production function for outboard motors will become : Y(K, L) = 2KL Y(K, L) = 5KL Given that Ronald uses 4 units of machine instead of 2 units , sketch his production function with the old technique and the new technique as he increases labor hours . With the new technique , do labor hours contribute more to production ? Labor L / 1, 4, 9, 16 Calculate the marginal product of labor at point 16 the average product of labor at point 16 .
Evaluate an investment projects and choose best investment option. Bank deposit rate 6% per annum:
1) Investment 2000, gives a profit at the end of the 1st year 200, 2nd year.b. 500, 3.g.b. EUR 1200;
2) a bon (4 coupons) with 500 EUR face value. The annual benefit (coupon payment) is 50 EUR. The term of the bond is 4 years.
