Business, 14.10.2020 01:01 jluvit6135

1. Whatis true at any point on the contract curve in an input (Edgeworth)box? Why do competitive markets generate (that is, result in) equilibria that are Pareto efficient in terms of inputs? (Hint: do all firms face the same price for inputs? Do profit-maximizingfirms want to minimize their costs? If so, what is true about the cost minimizing choice of inputs? Include a graph of the firm minimizing its cost given some output.)2. What is the relationship between the contract curve and the production possibility frontier? Where are the origins of the Edgeworth box on the ppf?3. What is the marginal rate of transformation (MRT)? What is the relationship between a point on the production possibility frontier (curve) and the MRT?4.Use a simple two good model to explain the difference between efficiency in production and economic efficiency. Would you agree with the statement that economic efficiency requires an efficient production, but many efficient allocations of inputs (efficiency in production) are not economically efficient?(Hint: does efficient production imply efficiency in distribution (consumption efficiency)?) Explain your reasoning with a graph.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:20, salvadorperez26

You wish to buy a cabin in 15 years. today, the cabin costs $150,000. you believe the price of the cabin will inflate at 4% annually. you want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. if you can earn 10% annually on your investments, how much do you need to invest now, in order to be able to purchase the cabin?

Answers: 3

continue

Business, 21.06.2019 23:30, aaroneduke4576

Consider the following scenarios. use what you have learned to decide if the goods and services being provided are individual, public, or merit goods. for each case, state what kind of good has been described and explain your answer using the definitions of individual, public, and merit goods. (6 points each) 1. from your window, you can see a city block that's on fire. you watch city firefighters rescue people and battle the flames to save the buildings. 2. while visiting relatives, you learn that your cousins attend a nearby elementary school that is supported financially by local property tax revenue. 3. you see a squadron of military jets flying overhead. 4. you find out that your aunt works for a defense manufacturing company that has several defense contracts with the government. she tells you that she works for a team that is producing a communications satellite. 5. your class visits a local jail run by a private, profit-making company that detains county criminals and is paid with tax revenue.

Answers: 1

continue

Business, 22.06.2019 12:30, sloane50

land, a building and equipment are acquired for a lump sum of $ 1,000,000. the market values of the land, building and equipment are $ 300,000, $ 800,000 and $ 300,000, respectively. what is the cost assigned to the equipment? (do not round any intermediary calculations, and round your final answer to the nearest dollar.)

Answers: 1

continue

Business, 22.06.2019 20:30, Picklehead1166

Data for hermann corporation are shown below: per unit percent of sales selling price $ 125 100 % variable expenses 80 64 contribution margin $ 45 36 % fixed expenses are $85,000 per month and the company is selling 2,700 units per month. required: 1-a. how much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000? 1-b. should the advertising budget be increased?

Answers: 1

continue

You know the right answer?

1. Whatis true at any point on the contract curve in an input (Edgeworth)box? Why do competitive mar...