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Problem 1. In this problem, assume that u (x1; x2) = (x1^a)(x2^1-a) . (1) Find the consumerís Hicksian demand for each of the goods; in other words, Find the functions h*1 (p1; p2; v) and h*2 (p1; p2; v) that solve min p1x1 + p2x2 subject to (x1^a)(x2^1-a) >v
Illustrate what do the economic indicators suggest about the current economy.
Show analytically that equilibrium price under Cournot is greater than price under perfect competition but lower than monopoly price.
q. the performance by patrice pbp company purchased a centaur computer controlled manufacturing milling machine for
The City Council in Bigtown is considering removing the monopoly rights of Bigtown Cable TV, Inc. Bigtown Cable is arguing that the competition in the cable TV market will be chaotic and result in a loss of jobs. As the staff economist for the City C..
Speculate about the behavior that could result from these transactions and propose at least two (2) strategies for dealing with them.
Assume that the market for salad dressing is in equilibrium. What will happen to the price of lettuce rises.
The existing equipment will be sold for $6,000. Illustrate what is the first cost that should be used.
illustrate the effect of capital formation by comparing the production possibilities curves with the present time and one in ten years time, for two different eonomies, one with a high rate of capital formation, and the other with a low rate of ca..
Show the short and long run effects of a monetary expansion in this situation in the AD/AS model. You can omit the labor market and production function graphs and you may assume sticky prices for SRAS.
Illustrate what are the long run equilibrium price, quantity of a single firm and the industry output. How many firms are in the market.
Suppose that these cost figures accurately refl ect the economic costs of providing inpatient services at these two hospitals and that the two hospitals face the same average total cost curve.
Mrs. Smith is earning a loss and should shut down in the short run. Mrs. Smith is earning a loss but should continue to operate in the short run. Mrs. Smith is earning a profit since the price is above the average variable cost.
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