1) Consider a region with a workforce of 12 million in a single city. The urban...

  

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1) Consider a region with a workforce of 12 million in a single city. The urban utility reaches its maximum with 3 million workers and includes the following combinations: 11 35 12 30 25 Workers 1 3 4 7 8 9 10 Utility 6 60 55 50 45 40 32 56 70 65 Suppose that the government establishes a new city with one million workers, leaving 11 million workers in the old city. Assume that the number of cities remains at two. a) Draw the utility function and mark the position of the new city and the old city Immediately after the formation of the new city. Utlity 80 60 50 46 20 utiliky Lurya 10 + 16 14 Warkers 12 b) What are the long-run equillbrium workforces in the new and old cities? In the ang kng is in aguil the c) How does your answer to part (a) and (b) change (if at all) if the urban utility curve reaches its maximum with 6 million workers and includes the following combinations: 7 8 9 10 40 35 11 3 33 43 12 25 1. 4 Workers 23 Utility 48 52 55 50 45 30 1) Consider a region with a workforce of 12 million in a single city. The urban utility reaches its maximum with 3 million workers and includes the following combinations: 11 35 12 30 25 Workers 1 3 4 7 8 9 10 Utility 6 60 55 50 45 40 32 56 70 65 Suppose that the government establishes a new city with one million workers, leaving 11 million workers in the old city. Assume that the number of cities remains at two. a) Draw the utility function and mark the position of the new city and the old city Immediately after the formation of the new city. Utlity 80 60 50 46 20 utiliky Lurya 10 + 16 14 Warkers 12 b) What are the long-run equillbrium workforces in the new and old cities? In the ang kng is in aguil the c) How does your answer to part (a) and (b) change (if at all) if the urban utility curve reaches its maximum with 6 million workers and includes the following combinations: 7 8 9 10 40 35 11 3 33 43 12 25 1. 4 Workers 23 Utility 48 52 55 50 45 30

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a The total population is 12 millions The government is establishing the new city with 1 million wor... View the full answer