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Β Are the following statements true or false? Explain in each case. a. Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods. b. Certain talented people have a comparative advantage in everything they do. c. If a certain trade is good for one person, it cant be good for the other one. d. If a certain trade is good for one person, it is always good for the other one. e. If trade is good for a country, it must be good for everyone in the country.
A consumerβs utility function over goods X and Y is U(X,Y)=XY + 10Y. Suppose this
consumer has an income of $110, the price of good Y is $2, and the price of good X
is $1. What is the optimal consumption bundle (X*,Y*) for this consumer?
5. Considering the following supply and demand equations (20 Points):
ππ = 3π β 1
ππ = β2π + 9
ππ/ππ‘ = 0.5(ππ β ππ )
a) Find the expressions. π(π‘), ππ (π‘), and ππ(π‘). When π(0) = 1, is the system stable or unstable?
b) If the constant for the change of excess of demand changes to 0.6, this is:
ππ/ππ‘ = 0.6(ππ β ππ )
do π(π‘), ππ (π‘), and ππ(π‘) remain the same when π(0) = 1?
A firm has the following total cost function π»πͺ = ππππ β ππ2 + π. ππ3.
a. Find the average cost function.
A firm has the following demand function π· = πππ β ππΈ and the average cost of π¨πͺ = πππ/πΈ + ππΈ β ππ.
a. Find the profit function.
b. Estimate the marginal cost function.
c. Obtain the production that maximizes the profit.
d. Evaluate the average cost and the marginal cost at the maximizing production level.
Consider a firm with the following production function πΈ = πππππ³ β ππ³2.
a. Find the maximum production level.
b. How many units of labor are needed at that point.
c. Obtain the function of marginal product of labor (ππ πΏ).
d. Graph the production function and the ππ οΏ½
What kinds of potential threats can impact the implementation of the ERP system in the manufacturing process. How to avoid these risks with necessary internal controls and business actions.
That Activity-Based-Costing system can act as an important function to improve the usefulness and accuracy of the costing information system. Write a paragraph to explain why?
Opportunity cost
2. A limited edition package is sold only to 200 customers for $130 each. The average value of the package for the 200 customers is $280. What is the total consumer surplus?
Β c. $30,000
Consider a two-player game where the player A chooses βupβ or βdownβ and player B chooses
βleftβ or βrightβ Their payoffs are as follows: When player A chooses βupβ and player B
chooses βleftβ they both get $3. When player A chooses βupβ and player B chooses βrightβ
they get $2(for A) and $4(for B). When player A chooses βdownβ and player B chooses
βleftβ they get $1(for A) and $6(for B). Finally, when player A chooses βdownβ and player
B chooses βrightβ they both get $5. The two players decide simultaneously.
(a) Draw the strategic form game. Is there any dominant strategy? Justify your answer.
(b) Is there a Nash equilibrium in pure strategies? Justify your answer.
(c) Find the best response functions and the mixed strategies Nash Equilibrium if each
player randomizes over his actions.
(d) Show graphically the best response functions and the Nash Equilibria (in pure and in
mixed strategies).
