Inferior good, maximizing, labor supply upward sloping, envelope theorem

Consider the problem of maximizing u(c,l) subject to pc + wl = wT + Y, where c is consumption, l is leisure time, T is the total time endowment, and Y is non-wage income. Show that if leisure is an inferior good, then the labor supply function is upward-sloping. b) Given the problem of maximizing ln x subject to α Ͱ ...continues

Price elasticity for a product.

Price rises from $10 to $15, and the quantity demanded falls from 100 units to 60 units. What is the coefficient of the price elasticity of demand between the two prices? A) 1.25 B) 0.80 C) 0.60 D) 1.00

price elasticity of supply

As price falls from $4 to $3, quantity supplied falls from 400 units to 350 units. Price elasticity of supply is: A) 0.95 B) 1.20 C) 2.22 D) .50

maximize tax revenue

Government wants to maximize its tax revenue and it can place only $2 per-unit tax on one of two goods. It should place the tax on the production of the good whose demand curve has the: A) higher price elasticity of demand B) lower price elasticity of demand C) greater length D) shorter length

marginal utility

Suppose Alice receives 123 utils from consuming one hamburger and 50 utils from consuming a second hamburger. What is the marginal utility of the second hamburger? A) 173 utils B) 73 utils C) 50 utils D) 0 utils

review final for econ 201

review final for economics 201

Microeconomic Theory - lexicographic, cardinal/ordinal utility,envelope, Hotelling's lemma, utility maximization

1. In the context of the usual utility maximization problem involving n(>2) goods, prove that not all goods can be net complements and that at least one good must be normal. 2. Prove the envelope theorem and use it to derive Hotelling's lemma. 3. Explain: (a) Why lexicographic preferences do not yield a continuous uti ...continues

Micro

In long- run equilibrium, P=minimum ATC=MC. Of what significance for economic efficiecy is the equality of P and minimum ATC?. The equality of P and MC? Distinguish between productive efficiency and allocative efficiency.

Herfindahl Index on a hypothetical merger

There are 10 auto firms in this problem each showing their market share percentage (US auto industry).The proposed merger involves Ford 22% and BMW 1%. It is noted that Ford includes Mercury, Lincoln, Volvo, Jaguar and BMW includes Mini Cooper.The pre merger index involves all ten firms and equals 1,758 according to my calculati ...continues

Re:Posting 11414

Your previous response seems good and logical but I would feel more comfortable if the additional information I am going to give would change your response in any way. You already know the market percentages for General Motors, Ford, and Bmw. Let me give you the figures for the remaining companies:DaimlerChrysler(14%)Toyota(11%) ...continues