Question 1 provide a careful proofa prove that a firms cost, Ask an Expert

Economics

Question: 1. provide a careful proof:

(a) Prove that a firm's cost function, c(w,y), is concave in w.

(b) Recall the lexicographic preference ordering on X⊂R_+^2: for any x,y∈X,x?y iff either

(i) x_1>y_1or

(ii) x_1=y_1 and x_2≥y_2. Prove that the lexicographic ordering is complete and transitive.

(c) Consider an n-good exchange economy(?^i,e^i )_(i∈Ι) where Ι = {1, ..., I}. Assume that each ?^i satisfies local non-satiation and can be represented by a utility function ui. Prove that any Walrasian equilibrium allocation (WEA) of this economy is Pareto efficient.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92302679

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question again our seller starts with demand q 12 - p and

Question: Again our seller starts with demand Q = 12 - P and marginal production costs of $4 per unit. The seller's transaction cost is $1 per unit, and buyers' are $2 per unit. a. Show that profit-maximizing output is 2 ...

Question in his 1964 presidential campaign barry goldwater

Question: In his 1964 presidential campaign, Barry Goldwater argued that a reduction in both government spending and taxes would boost economic growth. His views were disparaged by most economists and he was overwhelming ...

Question - present value application is it possible to

Question - Present value Application: Is it possible to retire on income we invest by foregoing a daily cup of gourmet coffee? At a price of $4.25 per cup, the cup-a-day Starbucks latte drinker is spending $1551.25 per y ...

Question tescos first international foray was into hungary

Question: Tesco's first international foray was into Hungary in 1994, when it acquired an initial 51 percent stake in Global, a 43-store, state-owned grocery chain. By 2004, Tesco was the market leader in Hungary, with s ...

Question suppose coffee f and cream c are perfect

Question: Suppose coffee (F) and cream (C) are perfect, two-for-one complements and Jack spends his budget of $12 per day on these two goods. That is, assume that Jack likes one ounce of cream for every two ounces of cof ...

Question consider the aggregate demand - aggregate supply

Question: Consider the Aggregate demand - Aggregate Supply model, suppose the economy begins in a short run equilibrium with output equal to potential output. - Assume that prior to the exogenous tax cut, the government ...

Task research and write a business report that addresses

Task: Research and Write a Business Report that Addresses the Question: ‘How Ethical are Major Internet Companies?' Methodology: Write a Business report with the following report headings and content: ‘Introduction' o Br ...

Question 1 explain the analogy between the intertemporal

Question: 1. Explain the analogy between the intertemporal optimum of the consumer (choice between current consumption C0and future consumption C1) and the optimum of the consumer at a moment of time (choice between cons ...

Question write a short essay of about 750 words each on the

Question: Write a short essay of about 750 words each on the following topics: 1. What are the common defenses of protectionism? Evaluate them. 2. Explain Coase Theorem and show how it works with examples. 3. How does Ma ...

Question several times in the last century the uk decided

Question: Several times in the last century, the UK decided to set the value of the £ above its equilibrium value. In terms of the Mundell-Fleming model, this means the value of the currency was set above the point where ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert