Please provide steps by step answer with proper explanation with final answer..... Consider a small economy in which consumers buyonly two goods: pretzels and cookies. In order tocompute the consumer price index for thiseconomy for two or more consecutive years, weassume thata. the number of pretzels bought by the typicalconsumer is equal to the number of cookies boughtby the typical consumer in each year.b. neither the number of pretzels nor the numberof cookies bought by the typical consumer changesfrom year to year.c. the percentage change in the price of pretzels isequal to the percentage change in the price ofcookies from year to year.d. neither the price of pretzels nor the price ofcookies changes from year· toyear.

Step 1:The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a…

Answered: Consider a small economy in which…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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maximize Q = 50 K 0.5 L 0.5 Q=50K 0.5 L 0.5 subject to the constraint 2 K + 3 L = 36 2K+3L-36 using the Lagrangian method.
The ongoing COVID-19 pandemic has disrupted both the education and health system in most, if not all, nations in the world. The scarring effects of the pandemic are predicted to be long-lasting, some of which are the fear of learning-loss and lower future earnings for the current students. Provide evidence(s) that support and/or contradict this statement! If such scarring is expected to occur, would the scarring effects would be worse for the developing countries than the developed ones, and whether the effects would be worse for certain groups such as the poor, women, children, etc.!
Pharmed Caplets is an antibiotic product with monthly revenues and Pharmed Caplets is an antibiotic product with monthly revenues and costs of:TR = $900Q – $0.1Q2 ………… TC = $36,000 + $200Q + $0.4Q2MR = ∂TR/∂Q = $900 – $0.2Q ……. MC = ∂TC/∂Q = $200 + $0.8QA. Set up a spreadsheet for output (Q), price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), average cost (AC), total profit (π), and marginal profit (Mπ). Establish a range for Q from 0 to 1,000 in increments of 100 (i.e., 0, 100, 200, …, 1,000).B. Using the spreadsheet to, create a graph with MR, MC, and AC as dependent variables and units of output (Q) as the independent variable. At what price/output combination is total profit maximized? Why? At what price/output combination is average cost minimized? Why?C. Determine these profit-maximizing and average-cost minimizing price/output…
given Q=2P-500 what is P? write down P as a fuction of Q
Can you check my answers? Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote.
The COVID-19 pandemic has caused an unprecedented increase in savings in many countries around the world. In the EU, the savings rate of households has jumped from 12.5% to 17%. In 2008-2009, it had moved from 12.5% to 14% (Dossche and Zlatanos 2020). Even if the source of 2020 surge in savings is different from the one of 2008, it is obvious that this increase does not result in more investment and growth. QUESTION: 1. With reference to the paradox of thrift discuss the appropriate approach by the government to get the economy out of economic downturn swiftly
A firm's revenue is R = 100g - 4q2 and cost is C = %3D 100 + 20g. The owner of the firm offers two alternative compensation packages to the manager: 1) 40% share of the company's profit or 2) 20% of the company's revenue. Which package will the manager choose?
I do not need the answer to A. Can I get help on part D? Sorry for not clarifying. Thank you!
Describe and use techniques that apply to decision making under uncertainty.
Emma has a utility functionU(x1, x2, x3) = logx1+ 0.8logx2+ 0.72logx3 incomes x1 , x2, x3 in the next three years. This is an example of (A) expected value; (B) quasi-hyperbolic utility function; (C) standard discounted utility; (D) none of the above.
(a) Will dynastic preferences, such as those discussed in Section 5.2, lead to infinite-horizon maximization if the instantaneous utility functions of future generations are different (ut(.) potentially different for each generation t)? (b) How would the results be different if an individual cares about the continuation utility of his offspring with discount factor β, but also cares about the continuation utility of the offspring of his offspring with a smaller discount factor δ?
One study presented in the text calculated the cost per life-year saved for various medical interventions. For each of the scenarios that follow, determine whether the scenario represents diminishing marginal product of medical care. If it does, determine whether the diminishing marginal product is on the extensive or intensive margin. Please completely explain your answer to each scenario. a) Intervention: Pap Smear, Starting at the Age of 20, Continuing to 74. Every 3 years, compared to not screening: Cost per life year saved = $36,017 Every 2 years, compared to every 3 years: Cost per life year saved = $711,671 b) Intervention: Hypertension Screening 40-year-old males: Cost per life year saved: $41,279 40-year-old females: Cost per life year saved: $63,333

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