User Account

All Pages

Conventionally shaped indifferences curves for both children

Assignment Help Microeconomics
Reference no: EM133248516

Suppose there are two kindergarteners respectively named Prince and Pauper. They each initially have received 10 pieces of construction paper for use for drawing. Assume that their respective utility depends only on two commodities. construction paper and washable markers. Prince is "rich" and has five times the number of markers as Pauper. and all markers are different colors. For simplicity. assume that construction paper and markers are in?nitely divisible.

1. Draw an Edgeworth Box showing the initial allocation, assuming conventionally shaped indifferences curves for both children.

2. Using the Edgeworth Box from part (a). explain how a ban on trading construction paper for additional markers can lead to an inefficient outcome for these two children.

3. Draw a new Edgeworth Box that represents a situation in which a ban on trading construction paper for additional markers does not reduce ef?ciency for these two children. 

Reference no: EM133248516

Questions Cloud

Explain in detail what are false memories : Explain in detail what are false memories and how it may be possible to reinforce false memories to make a "real memory"
Overall organizational performance : Explain how addressing the issue will improve healthcare HR operations and the overall organizational performance.
Identify the identity vs inferiority stage : Identify the identity vs inferiority stage the and describe the important psychological, biological, and social factors that typically occur during this stage
Identify potential positive and negative outcomes : Define cohabitation, give two reasons people decide to cohabit, and identify potential positive and negative outcomes of the situation
Conventionally shaped indifferences curves for both children : Draw an Edgeworth Box showing the initial allocation, assuming conventionally shaped indifferences curves for both children.
Determine the optimal consumption bundle : Use the Lagrange method to determine the optimal consumption bundle. Verify the optimal consumption bundle in a) above satisfy consumer equilibrium condition.
Consider production process for trucking transportation : Consider the production process for a trucking transportation company. Identify the fixed costs associated with running your small business.
What different types of costs : What different types of costs would you have? What competition might you experience?
Prevailing business models in industry : Do the digital disruptors come in with a business model very different from the prevailing business models in the industry?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd