Question
In: Economics
Assume in the market with two consumers, Chloe and Oliver. Chloe is endowed with 9 units...
Assume in the market with two consumers, Chloe and Oliver. Chloe is endowed with 9 units of good 1 and 6 units of good 2. Oliver is endowed with 18 units of good 1 and 3 units of good 2. They have the same utility function U(x1, x2) = x11/3x22/3. If we let the price of good 1 is $1, then what will be the equilibrium price of good 2?
a. $2
b. $12
c. $1
d. $6
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Problem 9-11 Assume that Product Z is made of two units of A and three units...
Problem 9-11
Assume that Product Z is made of two units of A and three units
of B. A is made of three units of C and four of D. D is made of two
units of E
Lead times for purchase or
fabrication of each unit to final assembly are: Z takes two weeks;
A, B, C, and D take one week each; and E takes three weeks.
Sixty eight units of Product Z are
required in Period 10....
Consider a 2x2 pure exchange Edgeworth box economy. Each consumer is endowed with two units of...
Consider a 2x2 pure exchange Edgeworth box economy. Each
consumer is endowed with two units of x and one unit of y. Consumer
A has (strictly) monotonic preferences over good x and is otherwise
indifferent between any levels of good y. The preferences for
consumer B are given by Ub(x, y) = x + 2y. What ratio of prices
Px/Py will clear both markets?
Ginny is endowed with $ 8million and is deciding whether to invest in a restaurant. Assume...
Ginny is endowed with $ 8million and is deciding whether to
invest in a restaurant. Assume perfect capital markets with an
interest rate of 6%.
Investment Option
Investment (millions)
End of Year 1 CFs (millions)
End of Year 2 CFs (millions)
1
2
1.8
1.8
2
3
4.3
1.0
3
4
5.4
1.4
4
5
5.2
1.6
List 4 perfect capital market assumptions.
1.
______________________________ 2.
______________________________
3.
______________________________ 4.
_______________________________
Which investment option should Ginny choose?
Which investment option can...
Suppose that there is only one firm, the monopolist and many consumers in the market. Assume...
Suppose that there is only one firm, the monopolist and many
consumers in the market. Assume that the market demand function is
given by P = 210−2Qd and the monopolist’s cost function
is given by C(Q) = 10Q.
(a) Setup the monopolist’s profit maximization problem.
(b) Solve the monopolist’s profit maximization problem and find the
market equilibrium price P∗ and quantity Q∗.
Now, assume that the government eliminates all the entry cost of
entering the market
as the government wants...
Ginny is endowed with $10 million and is deciding whether to invest in a restaurant. Assume...
Ginny is endowed with $10 million and is deciding whether to
invest in a restaurant. Assume perfect capital markets with an
interest rate of 6%.
Investment Option
Investment (millions)
End of Year CFs (millions)
1
1
1.8
2
2
3.3
3
3
4.4
4
4
5.4
Which investment option should Ginny choose?
Ginny is actively pursuing another business venture as a ticket
scalper. She estimates that for a $2 million investment in
inventory she can resell her tickets for $6...
Ginny is endowed with $8million and is deciding whether to invest in a restaurant. Assume perfect...
Ginny is endowed with $8million and is deciding whether to
invest in a restaurant. Assume perfect capital markets with an
interest rate of 6%.
Investment Option: 1, 2, 3, 4
Investment (millions): 2, 3, 4, 5
End of Year 1 Cash Flows (millions): 1.8, 4.3, 5.4, 5.2
End of Year 2 Cash Flows (millions): 1.8, 1.0, 1.4, 1.6
(i) List 4 perfect capital market assumptions.
(ii) Which investment option should Ginny choose? Why?
(iii) Which investment option can be eliminated...
Assume that Product Z is made of two units of A and three units of B....
Assume that Product Z is made of two units of A and three units of
B. A is made of three units of C and four of D. D is made of two
units of E
Lead times for purchase or
fabrication of each unit to final assembly are: Z takes two weeks;
A, B, C, and D take one week each; and E takes three weeks.
Fifty two units of Product Z are
required in Period 10. (Assume that...
Assume that Product Z is made of two units of A and four units of B....
Assume that Product Z is made of two units of A and four units
of B. A is made of three units of C and four of D. D is made of two
units of E.
Lead times for purchase or fabrication of each unit to final
assembly are: Z takes two weeks; A, B, C, and D take one week each;
and E takes three weeks.
Fifty eight units OF Product Z are required in Period 10.
(Assume that...
Assume that Product Z is made of two units of A and three units of B....
Assume that Product Z is made of two units of A and three units
of B. A is made of three units of C and four of D. D is made of two
units of E.
Lead times for purchase or fabrication of each unit to final
assembly are: Z takes two weeks; A, B, C, and D take one week each;
and E takes three weeks.
Fifty five units OF Product Z are required in Period 10. (Assume
that...
Problem 9-16 One unit of A is composed of two units of B and three units...
Problem 9-16
One unit of A is composed of two units of B and three units of
C. Each B is composed of one unit of F. C is made of one unit of D,
one unit of E, and two units of F. Items A, B, C, and D have 15,
50, 45, and 25 units of on-hand inventory, respectively. Items A,
B, and C use lot-for-lot (L4L) as their lot-sizing technique, while
D, E, and F require multiples...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What is the purpose of copyrights, patents, and trademarks? If a student uses University resources to...
- For all questions, please show all work and/or provide explanations. The Kd of the insulin receptor...
- Baked potatoes are normally wrapped in aluminum foil. How does this affect the cooling of the...
- What is the process to obtain biomass production
- A labor market has 50,000 people in the labor force. Each month, a fraction p of...
- A road with a radius of 72 m is banked so that a car can navigate...
- 1) If you had not dried the solid, would the calculated percent yield have been higher,...
ADVERTISEMENT