Policy consistent with pareto efficient allocation resources

Assignment Help Business Economics

Reference no: EM131004598

The government of France taxes movies that are produced outside of the country at the rate of tx , which effectively subsidizes domestically-produced movies. Is this policy consistent with a Pareto efficient allocation of resources? With the aid of social indifference curves, model a world in which consumers choose between two goods only, (taxed) “foreign movies”, good X, and (untaxed) “domestic movies” and all other goods, composite good Y. How does the marginal rate of substitution between the goods compare to the marginal rate of transformation algebraically and diagrammatically? Note that social indifference curves are defined over goods X and Y space whereas iso-welfare curves are defined over individual utilities.

Reference no: EM131004598

Questions Cloud

High costs of providing taxi services on consumers : A few years, the price of New York City taxi medallions hit $1,000,000. What do you think was behind the increases in the price of New York City taxi medallions? Is that a problem for the city? Should the city intervene in the market for these medall..

Staffing policy-ethnocentric-polycentric and geocentric : Describes three approaches to staffing policy: ethnocentric, polycentric, and geocentric. When is each approach appropriate?

What will be the size of the monthly payments : A refrigerator sold for $500. The store financed the refrigerator by charging 0.5% monthly interest on the unpaid balance. If the refrigerator is paid for with 30 equal end-of-month payments: What will be the size of the monthly payments?

Interest compounded semi-annually : How much money must be invested in an account that pays 6% per year interest to be worth $20000 at the end of 8 years of (forgetting the leap years and making "convenient" assumptions) : Interest compounded semi-annually? Interest compounded quartley..

Policy consistent with pareto efficient allocation resources : The government of France taxes movies that are produced outside of the country at the rate of tx , which effectively subsidizes domestically-produced movies. Is this policy consistent with a Pareto efficient allocation of resources? With the aid of s..

What value should you assign to the property : Your president bought two acres of land for $200,000 ten years ago. Although it is zoned for commercial use, it currently holds eight small, single-family houses. A property management firm that wants to continue leasing the eight houses has offered ..

Do an economic analysis of two giant competitor brands : Do an economic analysis of two giant competitor brands, Coke and Pepsi, in the context of them being rivals in the "Twenty-First Century" and use all the knowledge you have gathered over the last several weeks. Please do not make it a financial case...

Which decision leads to the highest expected utility : A business owner is trying to decide whether to buy, rent, or lease office space in an environment where the states of nature describe business conditions as either brisk or slow. The payoffs to the buy decision, with brisk listed first are 90 and -1..

Recessionary gap and consumer and business expectations : Classical economists of the 1930's did not believe that: Suppose the economy is initially in a recessionary gap and consumer and business expectations become less optimistic due to the War on Terrorism. In the long run, assuming that there is no poli..

User Account

All Pages