In this exercise we explore some technical aspects of general equilibrium theory in exchange...... ... but if an equilibrium exists, it results in an efficient allocation of resources. However, only in the absence of non-convexities can we conclude that there always exists some lump-sum...
In exercise 21.3, we began to investigate different ways of assigning property rights in the...... ... me (person 2) with music? (j) Solve for p and x 3 (which is equal to x 1 1 ). Do you get the same answer as you got when you assumed Cobb-Douglas tastes for both of us in...
With respect to McCracken’s APT model estimate of Orb’s Large Cap Fund and the information...... ... a GDP Fund would be good for clients who are retirees who live off the steady income of their investments. McCracken says that the fund would be a good choice if upcoming supply side...
Purchasing a large oven and related equipment for mixing and baking “crazy bread” is being considered by Perotti’s Pizza. The oven and equipment would cost $120,000 delivered and installed. It would be usable for about 15 years, after which it would have a 10% scrap value. The following...
Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company’s accounting system says that the unit product cost for this bracelet is $264.00 as shown below: Direct materials $ 143 Direct labor 90 Manufacturing overhead 31 Unit product cost $ 264 The members of a wedding...
If a house is valued at $940,000 in Chicago, find the price of a comparable house in Los Angeles. Housing Price Index. Realtors use an index to compare housing prices in major cities. The index numbers for several cities are given in the table below. In Exercises, use the following to find the...
Family Supermarkets (FS) has a kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2011. Each successive month, the budgeted cost-driver rate decreases by 0.4% relative to the preceding month. So, for example, February’s budgeted cost-driver rate is...
Company A buys casualty insurance from Insurer Co. The insurance premium is $24,000 for the year ($2,000 per month). Company A signs the casualty insurance policy on June 1, Year 1, for the one-year period from June 1, Year 1 through May 31, Year 2. Both Company A and Insurer Co. report on a...
1. Present a five-item ethics code that a retailer could impose on its suppliers with regard to fake and counterfeit merchandise. 2. As the buyer for a retail chain, what would you do if you found out that one of your long time suppliers had been passing on counterfeit goods as authentic? Why? 3....
Suppose that there is an increase in national income in a country. Under a fixed exchange rate system, according to the monetary approach, will the country’s balance of payments (official reserve transactions balance) move toward surplus or toward deficit? Why? How would you modify your...
In your view, what are the strengths of the portfolio balance or asset market approach as an explanation of exchange rate determination? What are the weaknesses of the approach?
After the numerator is divided by the denominator, (a) What is the oblique asymptote of the graph of the function? (b) Where does the graph of the function intersect its asymptote? (c) As x ? ?, does the graph of the function approach its asymptote from above or below?