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!
The economy consists of two consumers, A and B. Both consumers are endowed with one unit of good 1 and one unit of good 2. Consumer A is entirely indi?erent between all consumption plans. Consumer B has the utility function u(x1B; x2B) = x1B .x2B(i) Find a competitive equilibrium for this economy. (Hint: guess an equilibrium price and then check that it works.)
(ii) Find a second competitive equilibrium (different from the one you found in part (i)).
(iii) Show that the equilibrium is not effcient.
Problem 4
In problem 3 we found an example that shows that if the utility functions are not increasing then the competitive equilibrium may not be effcient. Here is a weaker de?nition of effciency: A feasible consumption plan is weakly e?cient if there is no other feasible consumption plan that increases every consumer's utility.
Prove that every competitive equilibrium of an exchange economy is weakly effcient.
An analyst should first examine the issuers debt structure in order to analyze the tax-backed debts. The debt burden consists of respective direct a
State the term nature of financial instruments. Nature of financial instruments (securities): Financial instruments (termed as securities) can be classifies in two broad
You have the following limited information upon which to base your decision as to which is the better of two alternative funding arrangements: ? Alternative 1 is to arrange funding
List the benefits of the flexible exchange rate regime. Answer: The benefits of the flexible exchange rate system include: a) Automatic attainment of balance of payments eq
Q. What do you mean by Average Cost and Marginal cost? Average Cost and Marginal cost: the average cost is the combined cost as explain above, but for the difference in the for
You have to make a payment of $1,561.39 in 10 years. To get the money for this payment, you will make 5 equivalent deposits, starting today and for the following 4 quarters, in a b
Milan Corporation is interested in buying a machine that will cost $50,000, and it will depreciate it on straight-line basis over a 5-year period. The machine is expected to last f
Factors Affecting cost of capital are elements in the business environment that cause a company cost of capital to be high and low. Figure below illustrative the various primary fa
Clearing and Settlement The Treasury Bills are available in physical form if an investor desires so. The market is mostly dominated by institutional players who have a facility
What is the Floating Rate Bonds (FRBs) Bonds whose interest payments fluctuate with changes in general level of interest rates and are tied to a basic rate (termed as the refer
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