EBK MODERN PRINCIPLES OF MICROECONOMICS
3rd Edition
ISBN: 8220103647816
Author: COWEN
Publisher: YUZU
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Chapter 8, Problem 7TPS
To determine
Benefit and weakness in going down the trade secret route.
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not use ai please
For the two questions, use the provided Lorenz curve.
Income
100%
Lorenz curve
If the economy's income were distributed according
to the Equality line, what would the Gini coefficient
be?
1
0
0.5
Infinity
80
60
60
60
10
40
If the economy's income were distributed according
to the A line, how much of the economy's income is
earned by the third quintile of families?
60%
40%
20%
100%
20
Equality
0
20%
40
40
A
50
60
80
100
Families
1. For the following utility functions, (i) calculate the MRS, (ii) show whether the MRS is constant, or
diminishing, or increasing, (iii) calculate the degree of homogeneity, (iv) check the convexity of the
Indifference Curve using the condition that for a function to be strict quasi-concave, it must be that
f2f11-2f1f2f12+ ff22 < 0, (v) based on MRS's characteristics, draw an approximate Indifference
Curve, and (vi) comment on the type of utility function.
(a) U(x, y) = 3x + y
(b) U(x, y)=√√x y
(c) U(x, y)=√√x + y
(d) U(x, y)=xy
x+y
Chapter 8 Solutions
EBK MODERN PRINCIPLES OF MICROECONOMICS
Ch. 8.A - Prob. 1QCh. 8 - Prob. 1FTCh. 8 - Prob. 2FTCh. 8 - Prob. 3FTCh. 8 - Prob. 4FTCh. 8 - Prob. 5FTCh. 8 - Prob. 6FTCh. 8 - Prob. 7FTCh. 8 - Prob. 8FTCh. 8 - Prob. 9FT
Ch. 8 - Prob. 10FTCh. 8 - Prob. 11FTCh. 8 - Prob. 1TPSCh. 8 - Prob. 2TPSCh. 8 - Prob. 3TPSCh. 8 - Prob. 4TPSCh. 8 - Prob. 5TPSCh. 8 - Prob. 6TPSCh. 8 - Prob. 7TPSCh. 8 - Prob. 8TPSCh. 8 - Prob. 9TPSCh. 8 - Prob. 10TPSCh. 8 - Prob. 11TPSCh. 8 - Prob. 1CCh. 8 - Prob. 2CCh. 8 - Prob. 3CCh. 8 - Prob. 4CCh. 8 - Prob. 5CCh. 8 - Prob. 6CCh. 8 - Prob. 7CCh. 8 - Prob. 8CCh. 8 - Prob. 9C
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