Marginal productivity of land in the production of housing

Assignment Help Risk Management
Reference no: EM131207340

Consider a simple economy that has a fixed amount of land, and where the only use of land is for housing. It is assumed that housing units can be produced at constant marginal cost, and that these units can be sacked. A given parcel could therefore support all the units of housing demanded in the community. Assume there are 10 parcels of land, each owned by a different individual.

(a) What is the marginal productivity of land in the production of housing? Assuming there is competition in the supply of housing, what is the competitive rental payment to land?

(b) In the case of several owners and competition in the supply of housing units, would a parcel of land sell for positive price?

Reference no: EM131207340

Questions Cloud

Find the average power delivered to the circuit : Find the average power delivered to the circuit. - Find the power factor of the circuit, and indicate whether it is leading or lagging.
What challenges do face in making sure all of your witnesses : You are in the final days of preparation. What challenges do you face in making sure all of your witnesses are present for trial? What mechanisms do you use to ensure they are present and available for in court testimony? What steps will you ta..
Effects on the stability of employment : Play the Social Security Game (links to an external site) to solve the Social Security problem. Detail your choices, noting the why's of your choices and also discuss the effects on the stability of employment, inflation, and GDP as a result.
How self-awareness leads to overcoming conceptual blocks : Which of the steps in the problem-solving process would be the most challenging for you and why
Marginal productivity of land in the production of housing : (a) What is the marginal productivity of land in the production of housing? Assuming there is competition in the supply of housing, what is the competitive rental payment to land? (b) In the case of several owners and competition in the supply of h..
What are the five basic methods of impeaching a witness : Why are a witness's biases allowed to discredit his or her testimony without the cross-examiner being required to prove that the witness is not credible, has contradicted his or herself, has bad character, or make an inconsistent statement?
Specific investments in their specialized factors : Assuming that the owners of labor and capital had to make prior specific investments in their specialized factors, explain the source of "failure"( or Pareto non-optimality) that emerges when the parties do not cooperate prior to participating the..
What stage of the cell cycle were most of the onion root : What stage of the cell cycle were most of the onion root tip cells in? Is this what you would expect based on what you've read this week; why or why not? Cite source(s) used.
Determine each country legal traditions : Determine each country's legal traditions and their major influences on crime definition, rate, and measurement. Examine the extent to which crime statistics compiled in different countries can adequately be compared. Provide support for the respon..

Reviews

Write a Review

Risk Management Questions & Answers

  Write a paper on aig cds collapse

Write a paper not more than 10 pages (5 pages theory and 5 pages analysis) on AIG CDS collapse. Its is corporate risk management class hence I want to add VAR in my paper.

  What profit or loss would the investment banker

What profit or loss would the investment banker incur if the issue sold to the public at an average price of $25 per share and what profit or loss would the investment banker incur if the issue were sold to the public at an average price of $15 p..

  Show the appropriate arbitrage strategy

Suppose that the current stock price is $100, the exercise price is $100. Identify the appropriate arbitrage opportunity and show the appropriate arbitrage strategy.

  Senior tutor office mnagement system

What is the Scope of Project, Functional and non Functional Requirements, Use Case Diagram(s),and Usage Scenarios of the project of "STO (Senior Tutor Office Mnagement System)" plz give some of theidea about that prject.

  What can you infer about whether it is likely out-of-money

What is the delta for this option and what can you infer about whether it is more likely in- or out-of-the-money? How much would you need to borrow to establish a replicating portfolio for the call option?

  Objective of the firm in corporate finance

Discuss the four major conflicts that may occur with the objective of shareholder value maximization and what is corporate governance and what is its purpose?

  Prepare a simple risk management plan

Choose an individual case study of your own that is related to the course of study.

  Find the slope of her budget line

a. Solve for Y on her budget line (as a function of X). b. Differentiate Y with respect to X to find the slope of her budget line. c. If Yvonne's utility is represented by U(X,Y) = X*Y^3, derive hers marginal utility of Y.

  Calculate the net expected value for the project risks

Calculate the net expected value for the project risks and opportunities cited above. How much should you plan for your contingency reserve budget based on the above? You must show all of your calculations.

  Determine the two possible stock prices for the next period

Determine the two possible stock prices for the next period. Determine the intrinsic values at expiration of European call option with an exercise price of $25. Find the value of the option today.

  Different ways it delivers

Explore different ways that IT delivers value to a business and its role in codifying Administrative, Technical, and Physical (ATP) Controlsspecific to SAS 70, Safe harbor provision, and HIPAA data retention.

  What is plr and how it is related to credit risk pricing

What is PLR and how it is related to credit risk pricing? Recently ABC Bank has approved a short-term loan at an interest rate of 10%. Calculate the implied PD if the one year treasury bill rate is 8%.

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!

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