Assume there are two plots of vineyard land, X and Y. If X costs twice as...

Assume there are two plots of vineyard land, X and Y. If X costs twice as much as Y and rents and discount rates are the same for each plot, the price difference can only be causes by different growth rates.
a) For both plots, provide an abstract equation for the growth rate g. Assume that plot Y’s price is NPV.

b) Based on your answer to (a), and assuming that the price-to-rent ratio for plot Y equals 12 and i=0.06 , what are the respective growth rates?

Expert Solution

Rahul Sunny answered 7 months ago

y'=y-x^2 ; y(1)= -4 Write a MATLAB program that makes two plots of the solution to...

y'=y-x^2 ; y(1)= -4 Write a MATLAB program that makes two plots of the solution to the equation using the following values. Suggest you use nested loops instead of two different loops. Be sure to label your plots. a. x0 = 1.0, step size h = .2, number of steps n = 20. b. x0 = 1.0, step size h = .05, number of steps n = 80.

Assume that an operation * is defined as follows: x * y = x' + y...

Assume that an operation * is defined as follows: x * y = x' + y Using Boolean algebra theorems and postulates (don’t use K-maps), check whether the operation * is associative or not?

Assume a company produces two products: x and y. Assume the cost functions are as follows:...

Assume a company produces two products: x and y. Assume the cost functions are as follows: C(qx, 0) = 2qx^2 C(0, qy) = qy^2 C(qx, qy) = 2qx^2 + qy^2 + qxqy A. Calculate the economies of scale meaure (S) for x B. Does x exhibit economies of scale? C. Calculate the economies of scale meaure (S) for y D. Does y exhibit economies of scale? E. Calculate the economies of scope meaure (SC) F. Would it be better to...

A fair die is rolled twice. Let X and Y be the smallest and largest, respectively,...

A fair die is rolled twice. Let X and Y be the smallest and largest, respectively, number that appears in the two rolls. (a) Determine the probability mass function of (X, Y). (Write a formula forP(X=i, Y=j)or give a table of values.) (b) Are X and Y independent? (c) Find E(X+Y). (Give your answer as a decimal number.)

Suppose there are two countries A and B, and they produce good X and Y. Assume...

Suppose there are two countries A and B, and they produce good X and Y. Assume perfect competitive market and labor is the only factor of production. Answer following questions based on David Ricardo's comparative advantage model. In country A, 2 laborers are required to produce one unit of good X and three laborers are required to produce one unit of good Y. In country B, five laborers are required to produce one unit of good X and six laborers...

Assume economy with two goods x and y and two people Alice and Bob. The MRSA...

Assume economy with two goods x and y and two people Alice and Bob. The MRSA of Alice is 15. The MRSB of the Bob is 10. (a) Is the current allocation of x and y is efficient? Why yes or why not? (b) Is there a trade that would be voluntary? Explain. Support your answer by graph. (c) Pareto Efficient Allocations, the Contract Curve and the Core. Define these three terms and explain the relationship between them. Use the...

1. Assume that X and Y are two independent discrete random variables and that X~N(0,1) and...

1. Assume that X and Y are two independent discrete random variables and that X~N(0,1) and Y~N(µ,σ2). a. Derive E(X3) and deduce that E[((Y-µ)/σ)3] = 0 b. Derive P(X > 1.65). With µ = 0.5 and σ2 = 4.0, find z such that P(((Y-µ)/σ) ≤ z) = 0.95. Does z depend on µ and/or σ? Why

Suppose x,y ∈ R and assume that x < y. Show that for all z ∈...

Suppose x,y ∈ R and assume that x < y. Show that for all z ∈ (x,y), there exists α ∈ (0,1) so that αx+(1−α)y = z. Now, also prove that a set X ⊆ R is convex if and only if the set X satisfies the property that for all x,y ∈ X, with x < y, for all z ∈ (x,y), z ∈ X.

Let X and Y be two independent random variables. Assume that X is Negative- Binomial(2, θ)...

Let X and Y be two independent random variables. Assume that X is Negative- Binomial(2, θ) and Y is Negative-Binomial(3, θ) distributed. Let Z be another random variable, Z = X + Y . (a) Find the following probabilities: P(Z = 0), P(Z = 1) and P(Z = 2); (b) Can you guess what is the distribution of Z?

Two farmers produce corn on adjacent plots of land. Farmer 1 uses groundwater to irrigate her...

Two farmers produce corn on adjacent plots of land. Farmer 1 uses groundwater to irrigate her crop while farmer 2 uses surface water. When farmer 1 utilizes groundwater, she imposes an external cost on farmer 2, since groundwater use leads to depletion of the surface water that is available to farmer 2. In particular, the profit function for farmer 1 is ∏1 = 8z - 1/2z^2. While the corn production function for farmer 2 is ∏2 = 10x - x^2 -...

Question