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A small economy has only two consumers, Harold and Irene. Harold's utility function is U(x, y) x+ 50y^1/2. Irene's utility function is U(x, y) x+ 5y. Harold is endowed with 500 units of x and 60 units of y. They make trades to reach a Pareto optimal allocation of resources in which both persons consume positive amounts. How much y does Harold consume?
One reason why prices tend to be less flexible in oligopoly markets than in other market structures is because: A) Coordination tends to stabilize prices B) According to the kinked-demand model, a firm will tend to become worse off if it increases or..
Why would there be a difference in the Price Elasticity of Supply for a good in the short-run compared to the long-run?
Which of the following is a true statement about? self-interest as used in the study of? economics?
Jenny Wilson is the owner and broker of a real estate company in Montgomery, Alabama. This company is known as Jenny Wilson Realty. for her real esate company, Ms. Wilson wants to develop a regression model to explain the selling price (SP) for a hou..
When examining wage dispersion, many people consider only monetary rewards and ignore other perks such as life insurance, health insurance, and paid vacation days. A compensation package including these items is described as having which of the follo..
Suppose the recent recession led to a drop in wages such that the price of labor fell by 25 percent.Economists predict that this drop will be sustained in the long run. Furthermore, the user cost ofcapital has not changed, nor is it predicted to. How..
The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent..
The BIG Idea Why and how does the Fed conduct monetary policy?
The Commerce Department revised its estimate of real GDP to $3.877 trillion, up from the earlier estimate of $3.835 trillion. Before adjusting for inflation, GDP was $4.603 trillion, up from $4.523 trillion.
Go to the Urban Institute's Health Policy Center Website and review trends in health insurance coverage, access to care, and use of healthcare services.
N firms compete in a perfectly competitive industry. Market demand Q, for a good is given by Q=3000-50P, where P is the market price. For each firm I, the long run total cost function , C(qi) is: What is the long-run supply curve for an individual f..
What was the difference in the two types of products? What is your conclusion regarding the proper approach when developing a new digital product?
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