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
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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
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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.
_______________________________
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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
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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
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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
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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
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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...
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