Question: Consider the endowment allocation problem. Three producers with three production technologies Y1 = 1.5X1, Y2 = 2.5X2, Y3 = 2X3. Producer 1, 2 and 3

Consider the endowment allocation problem. Three producers with three production technologies Y1 = 1.5X1, Y2 = 2.5X2, Y3 = 2X3. Producer 1, 2 and 3 has {10,15,20} unit of endowment X as production input. (i) (2pts) What is the optimal allocation of endowment? (ii) (2pts) What is the equilibrium interest rate? (iii) (2pts) What is the minimum credit multiplier for the optimal allocation to be achieved?

Do it quickly

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Show alll the steps Problem 3. (Technology) Suppose a producer has access to the technology given by the Cobb-Douglass production function y = 3K1 14. a) What can you say about the returns to scale...

Analyze this article and provide your summary in no more than 500 words. COSTS Measure Costs Right: Make the Right Decisions by Robin Cooper and Robert S. Kaplan From the September 1988 Issue anagers...

Answer appropriately. Final Exam (A) You have 2h to complete the exam and the final consists of 6 questions (15+10+25+15+20+15=100). Problem 1. (Consumer Choice) Jeremy's favorite flowers are tulips...

please help! summarize and pull key concepts from the reading. The past several years have witnessed a growing awareness among American managers of the central importance to competitive success of...

Circular Economy In light of all the issues associated with circular economy, develop a framework to achieve sustainability and social responsibility while simultaneously promoting equitable economic...

123 Compare the purely graphical properties of these two notations, and the ways in which the graphical properties of each display correspond to the information structure being defined. Describe...

Its economics...... Exercise 12 There are two sectors in the economy, A and B. The labor demands are: Sector A: w=50-5L, Sector B: w=80-7,5Lg a) Let the equilibrium wage be w= 5 . What is the total...

Teuro5 For the year ending December 31, 2021, the Company's income statement is as follows: Revenues $1,093,000 Expenses: Cost Of Goods Sold ($206,000) Administrative Costs ( 152,000) Amortization...

please read case and answer question below. case 14: harley-davidson: strategic competitiveness that spans decad guriqbal chee joel cunningh pallavi dalipart john klosterma brian ra texas a&m...

The clamp shown is used to hold the rough work piece C Knowing that the maximum allowable compressive force on the work piece is 200 N and neglecting the effect of friction at A, determine the...

Answer the following questions: 1. Name one new innovation in information systems, and explain how it has been used to enhance organizational decision making and collaboration. 2. Explain why it is...

The most theoretically sound goal of financial management should be: Maximizing the firm s bondholder wealth Maximizing the firm s profits Maximizing the firm s shareholder wealth Maximizing the firm...

The Office Supplies account had a $490 debit balance at the beginning of December. During December, $5,157 of office supplies are purchased. A physical count of supplies at December 31 shows $566 of...

Mark purchased a rental house on June 1, 2015 for 720,000 in US. It is depreciated over 30 years as residential property. He sells it on December 31, 2019 for 1,000,000. He incurs $20,000 of selling...

Draw a voltaic cell in which silver ion is displaced from solution by aluminum metal. Label the cathode, the anode, and other features of the cell. Show the direction of flow of electrons. Also,...

A method of separating cyclopentadiene from a stream containing other C3 hydrocarbons has been proposed in which the cyclopentadiene is dimerized to dicyclopentadiene and the C1,'s separated from the...

After pillaging for a few weeks with our new cargo bay upgrade, we decide to branch out into a new sector of space to explore and hopefully find new targets. We travel to the next star system over,...

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

1. Too reflect on self-management

Food supply

What is to be achieved for the individual is based on the companys needs.