Business, 02.03.2020 21:18, slbucknerholmes9
Consider a two good economy that has two consumers, Anne and Bill. Anne enters the economy with endowment ea = (2, 9) and bill enters with endowment eb = (4, 4). Let Anne’s and Bill’s preferences be represented by the utility functions, ua (c1, c2) = c1^2c2 ub (c1, c2) = c1c2, where c1 is consumption of good 1 and c2 is consumption of good 2. We will first consider a market equilibrium where Anne and Bill exchange goods at prices p1 and p2 for goods 1 and 2, respectively. By Walras’ Law, we will normalize a price, so in the following set p2 = 1.
1. Relative to the allocation where Anne and Bill simply consume their respective endowments, (a, b) = (ea, eb), is the equilibrium allocation a Pareto improvement? That is, does the equilibrium allocation make at least one consumer better off without making anybody worse off?
2. What is the value of Anne’s endowment relative to that of Bill’s?
3. State all allocations (a, b) that are on the contract curve.
Answers: 1
Business, 21.06.2019 21:50, samchix727
You have $22,000 to invest in a stock portfolio. your choices are stock x with an expected return of 11 percent and stock y with an expected return of 13 percent. if your goal is to create a portfolio with an expected return of 11.74 percent, how much money will you invest in stock x? in stock y?
Answers: 2
Business, 22.06.2019 11:00, neash19
Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period
Answers: 3
Business, 22.06.2019 20:40, Jacobstoltzfus
Review the wbs and gantt chart you created previously. propose three to five additional activities that would you estimate resources and durations. now, identify at least eight milestones for the recreation and wellness intranet project. remember that milestones normally have no duration, so you must have tasks that will lead to completing the milestone. add your activities and milestones to your gantt chart, creating a new gantt chart. estimate the task durations and enter dependencies as appropriate. remember that your schedule goal for the project is six months. copy the gantt chart and network diagram to a word document.
Answers: 2
Consider a two good economy that has two consumers, Anne and Bill. Anne enters the economy with endo...
Mathematics, 03.11.2020 19:30
Geography, 03.11.2020 19:30
History, 03.11.2020 19:30
English, 03.11.2020 19:30