Define Pareto Optimality. State the three conditions for Pareto optimum. What are the four main criticisms to Pareto's welfare theory?

2. Suppose a video game company sells the following two products separately: console and headset. Through a consumer survey group, it has estimated that the following individuals value the two products at the following prices:

a) If the company prices the console at $350 each and the headset at $40 each, how much revenue will the firm receive?

b) If the company prices the console at $200 each and the headset at $60 each, how much revenue will the firm receive?

c) Suppose the company bundles the console and the headset together for a package price of $260 each. What would be the total revenue in this case?

d) Is there a bundle price at which both consumers will purchase the package that yields the highest revenue of any possibility on this page? If so, what will it be? If not, why not?   

Is the absence of a COVID vaccine an example of market failure? Explain    

Chepa’s utility function is given by U (x, y) = ln x + 4 ln y. Assume that Chepa has endowments (10, 10) and that Py = 10 throughout the problem. (h) This part of the question is to investigate Chepa’s welfare under different prices. We will do it step by step.

(i) By substituting out the M with the expression of Chepa’s endowment income (see part (g)), obtain Chepa’s gross demands as functions of Px.

(ii) Plug your answer to (i) into Chepa’s utility function (that is, replacing the general x and y in her utility function by the optimal x and y given Px) to obtain an expression of the maximal utility achieved by Chepa as a function of Px.

(iii) Find the value of Px that gives Chepa the lowest utility. (Hint: Take the answer to (ii), differentiate it with respect to Px, set the derivative to zero and solve for Px in that equation. It is a good practice to check the second order condition to make sure you are getting a minimum — but if you feel uninterested or that this is too hard, you can trust that I am giving you a “nicely behaved” minimisation problem and skip checking the SOC.)

(iv) Explain the economic meaning of your result in (iii).

Define labour force participation rate and explain why it is always less than 100%?     

1. Wardco mining would like to expand operations in a west Texas region affecting a single small town. Expansion would put toxic chemicals into the groundwater that, if untreated, would make the water undrinkable. This is the only effect and, even then, the chemicals breakdown in about a decade.

a. If it cost Wardco $40 million to extract the minerals but would cost $10million to treat the water and the value of mined products to customers is $60million, should Wardco be required to pay the cost of treating the water?

b. If it cost Wardco $40 million to extract the minerals but would cost $10million to treat the water and the value of mined products to customers is $48million, should Wardco be required to pay the cost of treating the water? Would Wardco do so?

c. Suppose it cost Wardco $40 million to extract the minerals and the value of mined products to customers is $48million. It would cost $10million to treat the water but only $5million to buy all the affected residents’ property. Should Wardco be required to treat the water in this case?

How did President Reagan's foreign policy views toward the USSR and Cold War evolve from 1981-1989?

Back from his dream, Matt begins some strategic planning for starting another store in a small town that has no computer store and is not inclined to use mail order buying methods.

1. He believes the annual demand in the town will be P = 1800 – 10Q. First, calculate Matt's marginal revenue curve, and then graph both the demand and MR curves.

2. He estimates his marginal cost per computer to be constant at $600. Sketch on the graph the marginal cost curve. From this data, calculate how much he should sell to maximize profit and what price Matt should charge.

3. If capital costs are fixed at $12,000 for the year what is Matt’s total cost function and his average cost per computer at the optimal output?

4. From the average cost at profit maximum output, show the profit rectangle on your graph above.

5. If Matt were able to perfectly price discriminate, what would be his output and profit?

The following two equations are the demand equations for airplane trips for a business person and a vacationer, respectively. The airlines’ marginal cost is $20 per passenger.

? =620−100? ,and

? =180−40? ""

1. What price should the airlines charge each person if the firm’s objective is to maximize profit?

2. Does this pricing make sense? To answer this, calculate the price elasticity of demand for each customer type. Whose demand is more elastic? Explain your response.

SA 1. Bob supports his family with monthly income of $500. Currently, he spends $200 on food and the remaining $300 on composite goods. Under the new income assistance program to be implemented next year, Bob will become eligible to receive food vouchers. Those vouchers provide Bob with $300 worth of free food every month. However, they cannot be sold or exchanged for other goods. True or False: Assuming that food is an inferior good for Bob, he will be better off if his income increases by the same amount as the food vouchers. With the use of an appropriate diagram explain your answers.SA 2. Suppose that a firm uses labour and capital in production. The wage rate is $10 per unit of labour and the rental cost of capital is $10 per unit. The firm is currently producing 100 units of output by using the cost-minimizing input combination of 50 units of labour and 50 units of capital.On an isoquant and iso-cost diagram, show than an increase in output from 100 units to 150 units will result in higher short-run total costs, average costs and marginal costs than in the long-run counterparts.

What do you think about the importance of marketing in crises like Corona
Pandemic? Focus on all of the marketing functions such as product, place, marketing
communication, price.

In the Malthusian model, suppose that the quantity of land increases. Using diagrams, determine what effects this has in the long-run steady state and explain your results.

I need solve this problem nicely

Problem 1. ( JUST NEED PROBLEM 2 SOLVED)

Home’s demand curve for wheat is

D = 100-20P. Its supply curve is. S = 20 + 20P.

Suppose that Home is a small country.

a. Graph the demand and supply curves.

2. In the absence of trade, what would the price of wheat be in Home?
3. The price of wheat in the world market is 1.5. What is the free-trade equilibrium price of wheat in Home?
4. Determine the amount of domestic production, domestic consumption, and imports of wheat in Home under free trade.

Problem 2

In the example of problem 1, suppose Home imposes a specific tariff of 0.25 on wheat imports.

1. Determine and graph the effects of the tariff on the price of wheat and the quantity of wheat supplied and demanded in Home.

2. Determine using a graph the effect of the tariff on the welfare of each of the following groups:
   1. Home import-competing producers; (2) Home consumers; (3) the Home government.

3. Calculate, using geometric techniques, the consumption distortion loss, the production distortion loss, and the net welfare effect of the tariff.