Question
In: Economics
Suppose Filma and Trailor were the only inhabitants of an island. Filma has 10 units of...
Suppose Filma and Trailor were the only inhabitants of an island. Filma has 10 units of fish but no clothing. The trailor has 20 units of clothing but no fish. Consider the utility function U = F ∗ C (for both consumers). The price of clothing is $1 and the price of fish is $3.
A) write the budget constraints for Filma and Trailor. [HINT: convert the endowment into income using the given prices]
B) Calculate the utility maximizing bundles.
C) Do the optimal fish quantities add to the endowment? If the answer is no, specify whether there is excess demand (or shortage) or excess supply in the fish market?
D) Is the equilibrium competitive? Explain your answer.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Suppose Filma and Trailor were the only inhabitants of an island. Filma has 10 units of...
Suppose Filma and Trailor were the only inhabitants of an
island. Filma has 10 units of fish but no clothing. The trailor has
20 units of clothing but no fish. Consider the utility function U =
F ∗ C (for both consumers). The price of clothing is $1 and the
price of fish is $3.
A) write the budget constraints for Filma and Trailor. [HINT:
convert the endowment into income using the given prices]
B) Calculate the utility maximizing bundles....
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How did externalities tie into the demise of Easter Island and
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Suppose Lost Island has an economy that only produces two products:
guns and butter . These points below could be shown on a production
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products that this society can produce.
Type of Product : Productions Alt
A B C D E
Guns 0 1. 2. 3. 4
Butter (1lb tub) 10 9. 7. 4. 0
1.What do you think Lost should produce at?
2. From this point, explain what the opportunity...
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Johnson Corporation has an expected monthly capacity of 9,000
units but only 5,700 units were produced and 6,000 direct labor
hours were used during August due to Covid-19. The actual variable
overhead for August was $48,165, and the actual fixed overhead was
$140,220.
Standard cost data follow:
Standard cost per unit
(One unit Takes one Labor Hour)
Direct materials
$9.00
Direct labor
15.00
Variable overhead
8.00
Fixed overhead
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Total
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1) What is the Variable Manufacturing Overhead Spending
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3. Vacation Island has only one hotel on the entire island. The
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bellow. Price per night Quantity demanded $150 0 $130 1 $110 2 $90
3 $70 4 $50 5 $30 6 a) Calculate the hotel’s total revenue and its
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$30...
Langdon Company produced 9,600 units during the past year, but only 8,400 of the units were...
Langdon Company produced 9,600 units during the past year, but
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Direct materials used
$76,100
Direct labor incurred
$32,000
Variable manufacturing overhead
$21,500
Fixed manufacturing overhead
$38,400
Fixed selling and administrative expenses
$70,000
Variable selling and administrative expenses
$10,000
There was no work in process inventory at the beginning and end of
the year, nor did Langdon have any beginning finished goods
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What would be Langdon...
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only export good is palm oil, which sells at $250 per unit on world
markets. Atlantis currently exports 100 units of palm oil.
Suppose that over time the import price of machinery parts rises to
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Suppose the simple island economy of Macroland only produces three goods, coconuts, pineapples and lobsters. The...
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output data for selected years is shown below. The CPI for 2018 is
equal to
GOOD
QUANTITY
(millions)
PRICE 2017
($)
PRICE 2018
($)
Coconuts
100
0.95
0.90
Pineapples
260
1.20
1.40
Lobsters
210
2.00
2.00
Select one:
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b. 105.7
c. 94.6
d. 874
e. none of the above
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a. Do the math and determine whether or not this country should
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As is normally...
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