User Account

All Pages

Identify all pareto efficient allocations

Assignment Help Business Economics
Reference no: EM133127048

Anna and Bob live in a pure exchange economy where the goods are x1 and x2. Anna has normally shaped indifference curves and values both goods. Bob, however, is completely indifferent over any possible allocation. Anna has one unit of x1 and no x2, while Bob has one unit of x2 and no x1.

1. Identify all Pareto efficient allocations.

2. Consider the allocation where Anna gets 0.9 units of each good and Bob gets 0.1 units of each good. Could this be a competitive equilibrium?

3. Is the allocation in (2) efficient?

4. Does the first welfare theorem hold for this economy? If not, which assumption is violated?

Reference no: EM133127048

Questions Cloud

Is policing a pure public good : 1) Is policing a pure public good? Justify your answer by stating the criteria a pure public good must satisfy, and argue whether or not education satisfies eac
Is emily report in accordance with professional standards : Is Emily's report in accordance with professional standards? If not, what should she have done under the circumstances? Explain
Predict the event spending family contributes : Consider a community of two families A and B, who contribute EA and EB dollars to the community's events budget. Community events are a public good and the tota
Distribution of income maximizes social welfare : Assume that Alegra and Blake are the only two people in an economy and total available income is fixed at $100. Alegra's utility is given by UA = (yA - 20)2/3 w
Identify all pareto efficient allocations : Anna and Bob live in a pure exchange economy where the goods are x1 and x2. Anna has normally shaped indifference curves and values both goods. Bob, however, is
Calculate the monthly payment on this home mortgage : Martin wants to buy a house for $720,000 by borrowing this amount from a bank at 6.2 percent interest rate. Calculate the monthly payment on this home mortgage
Pricing decisions under monopoly and perfect competition : Compare and contrast pricing decisions under Monopoly and Perfect Competition (with market power versus without market power). Give an example for each market s
Vaccine for Covid-19 virus risky or uncertainty : Is the successful development and delivery of a vaccine for Covid-19 virus risky or an uncertainty?
What are the firm sales and net income : All candy is sold to distributors in May for $150,100, but it does not receive payment until June. For each month, what are the firm's sales, net income

Reviews

Write a Review

Business Economics Questions & Answers

  Automatic stabilizer and discretionary fiscal policy

Classify the following as automatic stabilizer, discretionary fiscal policy, or not fiscal policy a. the federal government increases spending because of the war in Iraq and Afghanistan b. the Federal Reserve increases the money supply

  Find nash equilibrium for one-shot version of this game

You operate in a duopoly in which you and a rival must simultaneously decide what price to advertise in the weekly newspaper. If you each charge a low price, you each earn zero profits. If you each charge a high price, you each earn profits of $3. Fi..

  Exploited by restricting international trade

Free international trade enables all nations to gain from specialization and trade. To what degree can the United States save jobs, compensate for low foreign wages, compensation for costly environmental policies and protect developing nations from b..

  Increasing the federal government debt

In the early 1980s, tax breaks and increases in government spending occurs simultaneously, significantly increasing the federal government debt.

  Identify all pure and mixed-strategy nash equilibria

Given these profits, Firm 2 want to match Firm 1's price, but Firm 1 does not want to match Firm 2's price. Does wither firm have a dominant strategy? Does this game have a unique, pure strategy Nash equilibrium? Identify all pure- and mixed-strategy..

  Explain the potential role that dojs leniency program have

Explain the potential role that the DOJ's leniency program might have on prosecutions and incentives for price fixing.

  Closeness of y scores to the regression line

As the value of r approaches ±1, what does it indicate about the following? (a) The consistency in the X-Y pairs

  What are the four main sources of market failure

What are the four (4) main sources of market failure? Based on two (2) examples, explain why each prevents the competitive market from operating efficiently

  Managerial economics knowledge

Concentrate on using your managerial economics knowledge, tools, and concepts in general, and Game Theory in particular, to weigh

  Price of breast reconstruction and breast augmentation

Two similar surgeries, breast reconstruction and breast augmentation, have different prices. Breast augmentation is cosmetic surgery not covered by health insurance. Patients who want the surgery must pay for it themselves.

  Which economic law is applied for this transaction

Question: Write down 2-3 pages of essay that includes the answers for the following contents.

  Maximizing profit for an economist

Maximizing profit for an economist is:

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