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There are 1200 people born in a community every period. Each is endowed with one good and lives 3 periods. After one period, they will find out whether they are type 1, in which case they want to consume in period 2, or type 2, in which case they will want to consume in period 3. The probability of being type 1 is 1/4; the probability of being type 2 is 3/4. Two assets are available: storage pays a gross return of 1 after one period; or a good can be turned into "capital" and become 2 goods after 2 periods. If capital is sold after one period, its price will be 1/2 due to the cost incurred by the buyer of verifying that it is genuine.
q1. from the price elasticity calculated above we can say that if the price of x increases by 10 then its demand will
Examine the main reasons why people are attracted to urban areas in the developing world, and select the key issues that make this rural to urban migration such a difficult problem for governments to deal with.
15% of the sales are collected after two months, and the remainder are collected after three month. What is the amount of the April collections?
If a 10 percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is said to exhibit decreasing returns to scale. If it causes output to increase by more than 10 percent, the production func..
One of Muddabber Potterys most popular items is a brie baker. When Mr. Swayze, the owner of the pottery, used it as a promotion, he gave away 724 of the bakers.
The traditional mortgage amortization schedule specifies a monthly payment that is
You are the manager of a firm that receives revenues of $60,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is..
How did the discussions affect your view of your future role in the field of IT?
Suppose a society consists of three cities (A, B , C. ) with populations of 99,000 , 51,000 , 6,000 people respectively. Suppose that the society has 15 doctors total. What cities will have how many doctors? If the number of doctors doubles to 30. Ho..
Define the term optimal pollution level. List two market based economic efficient policies for achieving optimal pollution levels. Using a graph of marginal cost of pollution control and marginal benefit of reducing pollution (Marginal cost of damage..
If country desires to smooth consumption, explain how much it should borrow in period 0. Illustrate what will level of consumption and trade balance is from then on.
Explain how do efficiency techniques differ in short- versus long-run when attempting to maximize profits. Illustrate what specific incentives are used in your workplace to promote efficiency.
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