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What is meant by Pareto efficiency? What is required for the economy to be Pareto efficient? If the conditions of the basic competitive model are satisfied, is the economy Pareto efficient?
The widget Industry in Anytown is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given by P = 800 - 20 W Where W represents the number of widgets sold per period. The total cost function (including opportunity or impl..
John receives utility from consuming X and Y as given by the utility function U(X,Y) = XY. The price of X is $9, and the price of Y is $12. a. What is John's MRS (marginal rate of substitution) b. What is the optimal mix (ratio) between X and Y in ..
Find v^n where v is taken from our normal actuarial notation and v>0
Suppose the production function is Q = 1.52L.6K.4, and K = 100. a. What is the equation for the average product of labor If L=50, what is the value of the average product of labor
Assume that the price of the good is $1 in both periods. Suppose that the household decides to consume 26,000 in period 1 and 32, 000 in period 2. Now suppose that the interest rate falls to 50%, and the household decides not to borrow or lend at ..
A recent insurance industry report claimed that 40 percent of those persons involved in minor traffic accidents this year have been involved in at least one other traffic accident in the last five years. An advisory group decided to investigate th..
The Micro Brewing Corporation asks you to forecast changes in consumer beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $5.50 to $7.50, the quantity demanded.
The income statement of Rolls Royce Group Plc., a U.K. automotive manufacturer, for the year ended December 31, 2007, reported revenues of £7,435 and cost of sales of £6,003. In addition, it reported other operating expenses of £918, a loss of £2 ..
The maintenance for a bus, whose life is 10 years, is $1500 per year starting the fourth year, increasing by $200 for each successive year. The interest rate is 5% per year. What is the present worth of maintenance cost
Ross Machine Company in Smithville, Tennessee is considering buying a "CNC Machining Center" for its machining department. The cost of the machine is $60,000. A down payment of $20,000 is required by the machine tool builder
A company deposits 2000 in the bank at the end of every year for 10 years. The company makes no deposits during the subsequent 5 years. If the bank pays 8% intereest, how much would be in the account at the end of 15 years
For the consumer price index (CPI) values shown, calculate the rate of inflation in each year from 1930 to 1933. Year: 1929 1930 1931 1932 1933 CPI: 51.3 50.0 45.6 40.9 38.8
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