Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
MB1=150-Q1 is the marginal willingness to pay, or marginal benefit, function for Consumer 1 who consumes Q1 of the commodity Q per month. For example, when Q1=1, MB=149, meaning that the consumer would be willing to pay at most 149 for 1 unit of consumption of good Q. MB for Q1 can be thought of as the marginal rate of substitution (MRS) for Q, in terms of the most the consumer would be willing to trade off in everything else (measured in $) for the consumption of Q. Under some strong assumptions, it can be thought of as the consumer's ordinary demand curve for good Q.
Similarly, MB2=75-.5Q2 is the corresponding marginal benefit function of good Q for Consumer 2.
a. Suppose these consumers live in Cuba and get a ration of 50 units of Q each month. What is the marginal willingness to pay at this level of consumption for each consumer? What is the total benefit each consumer receives from this policy-determined quantity ration?
b. Suppose these consumers enter the black market and illegally trade with one another. How much will they trade with each other, what will be their final level of consumption, and their MRS's in equilibrium? What will be the relationship between Q1 and Q2 be in ANY trading equilibrium involving these two consumers? What is the total benefit each consumer receives in the trading equilibrium? How does the total consumption benefit (sum of each consumer benefit) compare in this trading equilibrium with the total consumption benefit in the policy-determined quantity ration in the previous answer?
If the government starts welfare policy which pays B to all non workers and 0 to all workers, at what value of B will Mike opt out of the labor force and go on welfare?
Illustrate the maxmium so and so would pay for insurance.
What is opportunity cost of producing a car in Canada? What is the opportunity cost of producing the tonne of wheat in Canada? Describe the relationship between the opportunity costs of two goods.
Suppose in country Triniland employers are required to pay overtime at 50% above the normal wage rate for workers who work beyond 8 hours a day.
Assume that initially the goods and services market is in equilibrium at the potential
Describe the Product Life Cycle Concept and include the relative amounts of sales and profit during each stage.
Illustrate what are the major differences among an open and closed economy
Two oligopoly company are in the process of estimating their marketing strategies. Firm 1 can generate estimated profits of $10 million from strategy A
Suppose you decide to withdraw $100 in currency from your checking account. What is the effect on M1? Ignore any actions the bank might take as a result of the withdrawal.
You can lease the similar piece of equipment, delivered and installed, for an all-in cost of $65,000 per year, for three years, payable at the beginning of each year.
As all points on a contract curve are efficient, they are all equally desirable from a social point of view.
The demand curve for French plutonium shifts outward, at about the same time as the appearance of the foreign-exchange dollars. Illustrate what happens to the demand for French Francs.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd