Consider a small closed economy with two consumption goods: good 1 (meat) and good 2 (berries). There are two types of agents, h and g, andthey have the same preferences over consumption, represented by the utility function: u(x1, T2) = In ¤1 + In #2. However, there are twice asmany type-h agents as type-g agents.The only factors of production are their labour. When a type-h agent chooses to spend a fraction a of his day producing meat and the restproducing berries then his output is (yf, y) = (2a, 2(1 – a)). A type-g agent is more productive. When she chooses to spend a fraction B ofher day producing meat and the rest producing berries then her output is (yf, y2) = (38, 12(1 – B)).Which of the following statements is correct?a. In equilibrium, each agent of type h produces only meat, while each agent of type g produces only berries.O b. In equilibrium, it must be that each agent of type h produces only berries, while each agent of type g produces only meat.O c. In equilibrium, each agent of type h and g produces strictly positive amounts of meat and berries.

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Answered: Consider a small closed economy with…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with the following pmf. 1 2 4 5 6 2 2 3 4 2 3 p(x) 16 16 16 16 16 16 Suppose the store owner actually pays $2.00 for each copy of the magazine and the price to customers is $4.00. If magazines left at the end of the week have no salvage value, is it better to order three or four copies of the magazine? [Hint: For both three and four copies ordered, express net revenue as a function of demand X, and then compute the expected revenue.] What is the expected profit if three magazines are ordered? (Round your answer to two decimal places.) $ 11.75 What is the expected profit if four magazines are ordered? (Round your answer to two decimal places.) %24
A chemical manufacturing plant can produce z units of chemical Z given p units of chemical P and r units of chemical R, where: Chemical P costs $100 a unit and chemical R costs $400 a unit. The company wants to produce as many units of chemical Z as possible with a total budget of $80,000. 2= 100p0.8.0.2 A) How many units each chemical (P and R) should be "purchased" to maximize production of chemical Z subject to the budgetary constraint? Units of chemical P, p = Units of chemical R, r = B) What is the maximum number of units of chemical Z under the given budgetary conditions? (Round your answer to the nearest whole unit.) Max production, z= units
f. A drapper is required to supply two types of shirts type A and type B. The total number of shirts must not be more than 400. He has to supply more of type A than type B. However, the number of type A must not be more than 300 and the number of type B shirts must not be less than 80. Let x be the number of type A shirts and y be the number of type B shirts. If the profits were as follows: Type A Ksh 600 per shirt Type B Ksh 400 per shirt. Formulate a Linear Optimization Model, hence use the graphical method to determine the number of shirts of each type that should be made to maximize the profit.
Families who have pets are classified as having one, two or three pets. Let say that in a given year, 15% of families with one pet move to have 3 pets, and 5% move to have 2 pets; also 6% of all families with 3 pets move to having only one pet, and 4% move to having 2 pets; finally, 4% of all families having 2 pets move to having 1 pet and 6% move to 3 pets. The cost of having 1 pet is close to $500 a year, for 2 it is $750 and for 3 pets $825. What is the expected cost to having one pet, two pet or three pets? Please do fast ASAP fast
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6) The following data is available for a simple hedonic home price model. Lot size and house size are continuous variables. For example, for every 100 square feet in house size, the value of the home increases by $150x100=15,000. Regarding proximity to a hospital, any home within 3 miles of a hospital is worth an additional $10,000 premium. Beyond 3 miles, there is no premium. What is the value of a 2,000 square foot home on a 5,000 square foot lot 2 miles from the hospital? Coefficient Value Description Lot size in Sq Ft House in Sq Ft Within 3 Miles of Hospital 60 150 10,000
Exercise 2. Marginal and Conditional Relationships can be Very Different. For 100 mild cases of eczema, a new treatment had a higher cure rate than the old treatment (33.3% of 90 vs. 20% of 10). For 100 severe cases of eczema, again the new treatment had a higher cure rate than the old treatment (60% of 20 vs. 50% of 80). Over all 200 eczema cases, however, the old treatment had a higher cure rate than the new treatment- i.e. Simpson's Paradox strikes again. (a) Compute the overall cure rates for the new and old treatments. (b) Which treatment, old or new, would you choose and why?
Consider a small closed economy with two consumption goods: good 1 (meat) and good 2 (berries). There are two types of agents, h and g, and they have the same preferences over consumption, represented by the utility function: u(x1, x2) = In ¤1 + In x2. However, there are twice as many type-h agents as type-g agents. The only factors of production are their labour. When a type-h agent chooses to spend a fraction a of his day producing meat and the rest producing berries then his output is (yf, y5) = (2a, 2(1 – a)). A type- g agent is more productive. When she chooses to spend a fraction B of her day producing meat and the rest producing berries then her output is (yi, y) (38, 12(1 – B)). Normalise the price of one unit of berries (good 2) to 1, and let p be the price of one unit of meat (good 1). Which of the following statements is true?
Consider a two-period small open economy without production and a representative household, which lives for two periods. It receives endowments in the first period (Qi) and second period (Q2), respectively. The household inherits no wealth and optimally decides how much to consume in the first period (C1) and second period (C2) as well as international bond holdings (B1) in the first period, which pays the interest rate R. Household preferences are given by U(C1; C2) = log(C1)+log(C2). Explain in THREE sentences the effects of anticipated permanent improvement in terms of trade

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