In what sense is a competitive equilibrium a good or bad thing for a given economy?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Microeconomics

ISBN: 978-0393934243

8th edition

Authors: Hal R. Varian

See More Books

Question Posted: Feb 25, 2019 06:47 AM

See More Questions

In the Edgeworth production box diagram, what conditions must hold for an allocation to be on the production contract curve? Why is a competitive equilibrium on the contract curve?
A little exchange economy has just two consumers, named Kenand Barbie, and two commodities, quiche and wine. Kens initial endowment is 3 units of quiche and 2 units of wine. Barbies initial endowment...
In what sense is a reinvestment rate assumption embodied in the NPV, IRR, and MIRR methods? What is the assumed reinvestment rate of each method? Discuss.
Suppose that the government of Malud increases both its own spending and autonomous taxes by $300 and the economys multiplier equals 2.5. If consumers spend 95% of their disposable (after-tax)...
1. Do you think the benefits will offset the costs of the new Hilton cancellation policy? Why? 2. Do you think the new Hilton cancellation policy is ethical? Is it legal? Is it practical? 3. What...
Discuss briefly the advantages and disadvantages of single-bus, two-bus, and three-bus architectures inside a control unit.
Why would you purchase an electric vehicle?
James Corporation is planning to issue $500,000 worth of bonds that mature in 10 years and pay 6 percent interest each June 30 and December 31. All of the bonds will be sold on January 1, 2011....
Write a program to allow the user to create an triangle and calculate the area. The program will prompt the user to enter the x-coordinate and y-coordinate of each vertex (tip) of the triangle. After...
The chairperson of the department of management at State University wants to forecast the number of students who will enroll in production and operations management (POM) next semester, in order to...
What would happen if the firm depicted in Figure 32.2 decided to pay a higher wage? Figure 32.2: COCONUTS Isoprofit line Production function C* Profit = * L* LABOR
If Robinsons marginal rate of substitution between coconuts and fish is 2 and the marginal rate of transformation between the two goods is1, what should he do if he wants to increase his utility?
Show that the matrix will have complex eigen values if is not a multiple Ï. Give a geometric interpretation of this result. cos sin -sin cos
Assume you have ONLY the abandon option given in the question: 1) Draw the Decision Tree 2) What is the NPV with the abandon option? Page-views growth Page-views sigma Yearly EBITDA multiple Page...
Required: a) State the formulas used in the following cells and the amount. i. E13 ii. C14 iii. F16 b) State the cell that contributes to break-even point. The following questions are based on Figure...
1 723 Conditions for promotions 5 Years of service (Years) 6 Psychometric test (%) Required: a) LIST OF EMPLOYEES FOR PROMOTION 9 Names of employees Years of service 10 Munawarah Ali 11 Amiruddin...
Consider a three-period financial market with t = 0,1,2,3 and a down-and-out call barrier option with barrier H = 90 and strike K = 110. (a) Draw a binomial tree for the possible values of...
3. Suppose that g is given by the graph at left in Figure 5.3 and that A is the corresponding integral function defined by A(x) = g(1) dt. 3+ 6 MA -10 3+ Mat 3 5 Figure 5.3: At left, the graph of y=...
For the experiment described in Exercise 12.7, identify the dependent and independent variables. Indicate whether each variable is quantitative or qualitative.
What impact has the Internet had on the globalization of small firms? How do you think small companies will use the Internet for business in the future?
Horst and Nigel live in different countries. Possibly they have different preferences, and certainly they face different prices. They each consume only two goods, x and y. Horst has to pay 14 marks...
Here is a table that illustrates some observed prices and choices for three different goods at three different prices in three different situations. (a) We will fill in the table below as follows....
It is January, and Joe Grad, whom we met in Chapter 5, is shivering in his apartment when the phone rings. It is Mandy Manana, one of the students whose price theory problems he graded last term....
The following data refers to Huron Corporation for the year 20x2. Sales revenue $ 2,106,000 Raw-material inventory, 12/31/x1 89,000 Purchases of raw material in 20x2 731,000 Raw-material inventory,...
As Venue Manager, you have decided you will meet with a new employee who joined the organization just yesterday and share with them the compliance information that applies to two of the areas in...
Tourism is seen by many as the absolute advantage for several countries in the Caribbean. Simpson (2022) states that the Caribbean is the most tourism-dependent region in the world. How can your...

In what sense is a competitive equilibrium a good or bad thing for a given economy?

Question:

Step by Step Answer:

Given a few assumptions an economy that is in competitive equilibrium is Pareto efficient It ...View the full answer

Intermediate Microeconomics

Students also viewed these Business questions