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(a) Will dynastic preferences, such as those discussed in Section 5.2, lead to infinite-horizon maximization if the instantaneous utility functions of future generations are different (ut(.) potentially different for each generation t)?
(b) How would the results be different if an individual cares about the continuation utility of his offspring with discount factor β, but also cares about the continuation utility of the offspring of his offspring with a smaller discount factor δ?
The economy of Sonrisa has 1000 people in three income categories: poor, middle class, and rich. The poor ear $500 per year and have to spend it all to meet their consumption needs. The middle class earn $2,000 per year, of which $1,500 is spent a..
A firm purchases goods on credit worth $1,250. The same firm pays off $1,000 in old credit purchases. An investment is made via the purchase of a new facility and equity is issued in the amount of $3,000 to pay for the purchase.
Illustrate the supply and demand curves graphically, and compute the skill premium going to the high-skill workers in the short run by solving the two equations.
Compute the arc elasticity of demand for each price segment
Compute the opportunity cost in forgone tanks for each additional truck produced: Truck output 0 1 2 3 4 5 Tank output 5 4.5 3.8 3.0 2.0 ..
1. in the x11 multiplicative decomposition method yt x c x s x e an ma 3 smoother is applied to the estimated
What was GDP in 2013 (sometimes called GSP) for your state?
Write equations for fixed, variable, and average costs
When the colts won the super bowl the demand for peyton manning's jersey was: P = 210 - 0.002Q with a corresponding marginal revenue of: MR = 210 - 0.0004Q IF the marginal cost of producing a jersey is $10, how much are the trademark licensing rig..
reserve requirement for banks is set at 5. your firm withdraws 42000 on its line of credit at the security bank to
Graph these curves and illustrate the market demand curve.
Alice used to work as a teacher but has decided to set up her own cake factory after watching Masterchef. As a teacher Alice earned $50,000 per annum. The cost of materials used to make cakes is equal to $10,000 per annum and in addition.
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