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Suppose that two consumers care only about the goods that they own. (The goods are private for them.) Starting from a competitive equilibrium allocation, is it possible for both consumers to be made simultaneously better off by trading with each other? Show that your answer is correct. Illustrate your answer with graphs showing possible trades between the two consumers. Explain what it is in your graphs that shows that the allocation the consumers start from is a competitive equilibrium allocation.
How are resources allocated in market and centrally planned economies?
Long-Term Investment Decisions Due Week 9 and worth 300 points Assume that the low-calorie microwavable food company from Assignments 1 and 2 wants to expand and has to make some long-term capital budgeting decisions.
Suppose that you have a business in which you hire five workers, to whom you pay $4 an hour. Suppose further that you have overhead costs of $100 a day and that you pay $1 in materials cost fo each item that your business manufactures. Assuming that ..
Should the United States pull out of NAFTA? Explain why we should or why we should not. A group at your school has called a meeting to discuss a boycott of the college bookstore if it continues selling clothing made with sweatshop labor. Would you su..
Brunner and coauthors (2001) studied home ownership and median incomes in different California communities and their connection with voting on a proposal to promote school choice. What does this fact suggest about the likely net benefits of the propo..
Elucidate under a fixed exchange rate system expansionary monetary policy depletes foreign reserves at the federal reserve.
What is the 95% confidence interval estimate of the population mean flying time for the pilots? The mean number of hours of flying time for pilots at United Airlines is 36 hours per month.
Explain how does the trade deficit affect U.S. economy. Explain how does it affect the firm or organization you work for.
The process of specialization and exchange allows a producer to become a. proficient in one or a few areas of production b. proficient in all areas of production c. self-sufficient d. independent
Illustrate what is the products price after the imposition of the tariff. what is the domestic value added before and after the imposition of the tariff.
Explain how much of the tax will the sellers pay. How much will the buyer pay for the product after the tax is imposed.
Suppose Chen has demand Q = 40 – 2P for streetlights and Abby has the demand Q = 10 – (1/2)P for streetlights. The cost of building each streetlight is $19. How many streetlights are socially optimal? Compare this socially optimal quantity with the q..
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