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Explain the reasoning for existent of financial institutions.
Let 𝑋 be a uniformly distributed random variable in [a,n]. The values of an independently drawn sample of size five from 𝑋 are given by {1.3, 0.8, 9.5, 20.2, 8.2}. Let â and ñ
) Calculate the income elasticity of Good K when income increases from RM1000 to RM2200. State the type of Good K.
Give a picture of Positive externalities on consumption: https://drive.google.com/file/d/1KitPcjAWw291BIcMJPsLMnqr7elbQ5-p/view?usp=sharing
Correct the explanation below to be correct and complete.
"Competitive market equilibrium is reached at the free market and Qe vaccination is carried out throughout the year. Because at this point, the marginal private benefit curve (MPB) of the health care facility is equal to the marginal social cost (MSC).
However, as noted above, vaccination has a marginal external benefit even for the unvaccinated, and this benefit is not taken into account by health care facilities.
From a social perspective, the marginal social benefit (MSB) equals marginal social cost (MSC). Thus, the quantity optimum immunization level is achieved at the social optimum, but not at Qe.
In the presence of positive externality, the market will always produce less than the socially optimal level. Without government regulation, society would suffer a welfare loss equal to the triangle."
Jesse belongs to an HMO that requires precertification and preauthorization for certain medical care. Jesse does not like any of the physicians in the HMO, so he decides to go to a physician out of the network. When he receives his bill for care, his insurance has only made a minimal payment, and he is responsible for a large portion of the bill. What did Jesse do that minimized the payment? Would preauthorization or precertification make a difference in the payment?
A competitive firm has a three factor production function f (x, y, z) = (x + y )1/2 Z1/3. the factor prices used to be wx= 4, wy = 2, and wz = 1.suppose that that price of factor y doubled while the other two remain same. then the minimum cost of production will be :
A) doubled
B) increase by more than 50 % but less than 100 %
C) increase by less than 50 %
D) stayed the same
Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is $480,000. ATVs cost $12000 each and snowmobiles cost $16,000 each.
a. Draw a budget line for your purchase of new vehicles.
b. What is the opportunity cost of one ATV?
c. What is the opportunity cost of one snowmobile?
The inequality in the supply of COVID-19 vaccines between rich and poor countries is creating a serious “oversupply and undersupply” situation.
Meaning?
Consider a consumer whose utility function is given as: U (x, y) = xy, where x and y denote the quantities of goods x and y consumed. The budget constraint faced by the consumer is: 4x + 8y = 120, where 4 is the price of good x, 8 is the price of good y and 120 is the income of the consumer.
a) Find the optimal quantities for x and y consumed by the consumer. Show your solution diagrammatically
b)Following on the answer in a, now assume that the price of good x increases to 8. Find the new quantities consumed by the consumer
Campbell owns an online shop and to sell to three (3) individuals, A, B and C, whose individual demand equations are as follows:
• A: P = 70 -1.0QA
• B: P = 100 -0.5QB
• C: P = 80 -4.00QC
The industry supply equation to be QS = 80+ 7P
You are required to
a. Determine the equilibrium price and quantity
b. Determine the amount that will be purchased by each individual
