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 answer-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...
In Exercises 7176, write each system in the form AX = B. Then solve the system by entering A and B into your graphing utility and computing A -1 B. w + x + y + z = 4 w + 3x - 2y + 2z = 7 2w + 2x + y...
Can policymakers exploit the Phillips curve relationship by trading more inflation for less unemployment in the short run? In the long run? Explain both the classical and Keynesian points of view.
Exact Photo Service purchased a new color printer at the beginning of 2016 for $38,000. The printer is expected to have a four-year useful life and a $3,500 salvage value . The expected print...
A company wants to minimize the total cost of long distance charges for their call centres. The table below specifies the average cost per minute from each call centre location to a particular...
Please solve this problem using C language Hacker Industries has a number of employees. The company assigns each employee a numeric evaluation score and stores these scores in a list. A manager is...
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?
What strategies are most likely to be useful for firms in "perfectly" competitive markets?
The margin of safety in the Flaherty Company is $24,000. If the company's sales are $120,000 and its variable expenses are $80,000, its fixed expenses must be: $32,000 $8.000 $24,000 $16,000
3. Show the steps of Bellman-ford algorithm on the following graph. 1 -4 10
(d) Write the output of the following program. Assume that p and x are allocated addresses 06FD4 and 06FD8, respectively. # include using namespace std; int main () { } int *p; int x=37; cout <
Find all equilibrium points of the given system and determine whether we have linear stability at them or not. x' 1 - ey y' = 1- x x sin y =
Describe some of the benefits of e-procurement with example.
What happens to a consumer's optimal choice of goods if all prices and the consumer's income double? (What happens to the intercepts of the budget constraint?)
Clark, PA, has been engaged to perform the audit of Kent Ltd.s financial statements for the current year. Clark is about to commence auditing Kents employee pension expense. Her preliminary enquiries...
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 forces in (Figure 1) act on a 1.1 kg object. Part A What is the value of a, the z-component of the object's acceleration? Express your answer with the appropriate units. Figure 3.0 N' 4.0 N y 3.0...
There is a performance gap between processors and main memory which cache memories aim to bridge. Task 1: Review issues that operating system designers face in the implementation of highly optimized...
Determine the power rating of the motor in an elevator system. The elevator (with a full load) weights 2200 kg and is required to move upward 3 m/sec at constant speed. The lifting mechanism is 82%...

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