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Problem: Explain whether the following functions are monotone or strongly monotone:
v(y,z) = min{3y,2z}
v(y,z) = 5y + 3z
In addition, the above functions satisfy convexity or/and strict convexity.
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In the short run, a perfectly competitive firm suffering a loss, Monopolistic competition is best described as
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Why doesn’t the observation that the quantity sold equals the quantity purchased imply that equilibrium has been achieved? What further conditions would have to be met for you to be certain of equilibrium?
During a recession, consumers may want to save more to provide themselves with a reserve to cushion possible job losses. Use the Keynesian cross model to describe the impact of an exogenous decrease in consumption (i.e. a decrease in current C not du..
True or false? According to the Aggregate Expenditures model, at equilibrium GDP, saving is equal to planned investment and there are no unplanned changes in inventory.
A perfectly competitive firm faces a:
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Explain how much extra surplus does the producer capture when it engages in first-degree price discrimination instead of charging a single price.
A farmer uses three inputs to produce vegetables: land, labor, and capital. The production function for the farm exhibits diminishing marginal rate of technical substitution. What happens to the cost-minimizing quantities of labor and capital for a g..
Contraction GAP, Illustrate what does a Contraction Gap imply about the actual rate of unemployment relative to the natural rate.
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