CONNECT F/MICROECONOMICS
21st Edition
ISBN: 2810022151240
Author: McConnell
Publisher: MCG
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Chapter 5, Problem 3DQ
To determine
The difference between the rent seeking and the profit maximization.
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If a per unit tax of $6 were to reduce quantity of this product traded to only 10 units, what would be the efficiency cost to the economy?
1. if alpha - 3 / 4 and H - 1000 and L - 200 what is the minimum rent the landlord charges such that the absolute difference between the rent and the share cropping contract for the tenant in the good state ) is twice as large as the difference between the sharecropping and the rent contract in the bad state )
O. 500
O. 350
O. 233.33
O. 300
2. If UIA - A - 1 / 2 , X - 144 , Y - 64.p - 1 / 2 and CE - 1.5 . Calculate the maximum value of a for the imperfect insurance to be incentive compatible and the intercept of the ICC respectively ,
O. < 0.125, >4.
O.
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