Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

MICROECONOMIC ANALYSIS:

Section A:

problem 1: What do you mean by a social welfare function? If you suppose that such a function exists, what properties of social optima would be considered by you? Discuss these properties.

problem 2: Assume that there is a pure exchange economy with 2 consumers and 2 goods. The endowments are w1 = (2, 4), w2 = (4, 3). Consumers are or else identical and they have utility function U(x, y) = x1/3y1/3.

a) Make an Edge worth Box for this economy.

b) Give a definition of Pareto Optimal Allocation in this economy. Find out all Pareto optimal allocations and graph them in the Edge worth Box.

c) How would you define a competitive equilibrium for this economy? Solve for the equilibrium and check whether the competitive equilibrium is Pareto Optimal.

problem 3: Two players first simultaneously declare Yes or No. If any of the players declares No, then each player gets 80. If both players declare yes, then they play the given game:

595_subgame perfect equillibria.jpg

Find out all the subgame-perfect equilibria of the whole game including pure strategies only.

problem 4: What is the theory of Second Best? Prove the theorem by using a diagram.

problem 5: Let the optimal incentive plan be given as:

s (x) = wx+ k where
s(x)= incentive scheme
x = output, w = wage and k = constant 4

A worker can produce x units of output at a cost of C (x) = x2/2 and he can achieve a utility level of u = 0 working elsewhere. What is the optimal wage-labor incentive scheme s(x)1 for this worker?

Section B:

problem 6: Suppose Kareena’s utility function is u = (y/1000)1/2. Her initial income when healthy is 36,000. Though, there is a 50% chance that she will face financial loss on being taken ill and the income is likely to decrease by 20,000.

a) Find out the expected value of her income.
b) What expected utility she will have given the possible state of her health?
c) What is the risk premium she will be willing to pay to cover the risk of sickness?

problem 7: Consider the given game given in extensive form:

2408_game in extensive form.jpg

a) Use backwards induction to find out equilibrium of the game.
b) prepare this game in the normal form.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92046

Have any Question? 


Related Questions in Microeconomics

Description of assignmentreport paper basisstudents work

Description of Assignment: Report Paper basis. Students work together to research and profile a particular in Microeconomic policy: the property tax in the United States. Grading Criteria (What constitutes a good assignm ...

Introduction to economic evaluation of health promotion

Introduction to Economic Evaluation of Health Promotion Interventions Assignment Evaluating Cost-effectiveness using Markov cohort models: The HPV case The goal of this assignment is to provide students with applied prac ...

Assignmentone responsibility of an information assurance

Assignment One responsibility of an information assurance professional is to work with the organization's security team to explain risk assessment and report findings to executives. The report is likely to involve sensit ...

Assignment-money and pricesjaydeethe organizations

Assignment-Money and Prices Jaydee The organization's strategic plan you wrote about in Week 2 calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over ...

Assignmentyou are the director of safety and health at

Assignment You are the Director of Safety and Health at Rotorcraft America, a mid-sized company that designs, manufactures and sells helicopters. Your organization has manufacturing operations in San Francisco, Californi ...

Assignmentoverviewthe incidence of fraud in the news has

Assignment Overview The incidence of fraud in the news has become more common in recent years. As the accounting profession becomes more aware of fraud schemes, it seems that the criminals who perpetrate them have become ...

Assignmentwhat are the two distinguishing properties of a

Assignment What are the two distinguishing properties of a public good? Explain each in one or two sentences. Give an example of a public good different from any of the examples in your text or my notes. What is the "fre ...

Assignment voluntourism-go to httpwwwvoluntourismorgreview

Assignment: VolunTourism- Go to http://www.voluntourism.org Review the home page to understand the resources available on this web site and to get a feeling for what VolunTourism is.On the menu (left screen) under "Who A ...

Assignmentyou will submit your second comprehensive summary

Assignment You will submit your second comprehensive summary (4-5 pages) regarding your final progress report. If you are still in your original business, what lessons did you learn? If not, what went wrong? What improve ...

Assignmentscenario summarya kansas city based supplier of

Assignment Scenario Summary A Kansas City based supplier of health care information technology (HCIT) solutions has recently hired you as a Human Resource Manager. You are in charge of hiring new medical consultants for ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro