Problem 1. Do the following utility functions represent risk-averse, risk-neutral or risk-loving preferences? Motivate your answers. In each question, w is the wealth. (a) u(w) = 10w + 3 (b) u(w) = w3 + 3w (c) u(w) = e4w (d) u(w) = 1- e-w
Answer the following questions based on the given information Original K = $45 billion Original L = 12.5 million d = 6% L growth = 2.5% K= value of kapital; L = Labor force; d = Depreciation 1. What is the original K/L ratio? 2. After 1 year, given depreciation and the growth in the labor force, what is the new K/L ratio? 3. How […]
Based on the Ethics of Big Data, what microeconomics principles are being used. What is the impact for demand? Evaluate the different market structures that big data benefits the least and the most from. While data collection may benefit the business community, discuss the concerns for consumers as big data proliferates.
Question One Consider the market for snowmobiles in Wisconsin. There are two major producers, Avalanche and IceRunner. The demand for snowmobiles is characterized by the following equation: P = 3400 – A – I, where A represents the number of snowmobiles Avalanche produces and I represents the number of snowmobiles IceRunner produces in a year. The two companies have the same cost structures. Each have […]
The following illustrates the market response to reports that experts expect higher prices in the future. Prices increase from $2 to $3 (P1=2 and P2=3) and quantity increases from 50 to 70 (Q1=50 and Q2=75). Presuming the supply curve intersects at the origin (0,0), what is producer surplus at the new market equilibrium? a. $105 b. $375 c. $210 d. $515
I need help with this assignment You operate a delivery service in your local area, but you are thinking of expanding to another market. You’re concerned that you might need to set different prices in the new market because the cost of gas might be much different. 10 gas stations in your local area. Record the price per gallon for each gas station. Research supply […]
Kay enjoys x but loathes y. Her preferences are consistent with the convexity and continuity axioms. Draw two of Kay’s indifference curves. Be sure to indicate which is associated with higher utility. Anyone can graph it?
1) Heritage apartments has 100 residents who are concerned about security. The table belowgives the total cost of hiring a 24-hour security guard service as well as the marginalbenefit to each of the residents.Total CostMarginalMarginalNumberper DayBenefitBenefitof Guards(S)per Residentto all Residents(S)(S)300106004W900241200a) Why is the security guard a public good for the residents of HeritageApartments?b) Why will zero guards be hired if each of the residents must […]
A furniture manufacturer has warehouses in cities represented by nodes 1,2, and 3. The values on the arcs indicate the per unit shipping costs required to transport living room suites between the various cities. The supply of living room suites at each warehouse is indicated by the negative number next to nodes 1, 2, and 3. The demand for living room suites is indicated by […]
The company I work for charges $60 for a boardgame we invented and has sold exactly 3000 copies last year. Elasticity for the game is three. Please determine a linear as well as a power demand curve.
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