For questions regarding the mathematical analysis of economic models and problems. This includes questions about the formulation or solution of models from microeconomics or macroeconomics.
Questions tagged [economics]
1602 questions
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How would I find the equilibrium point?
A baker will supply $22$ jumbo cinnamon rolls to a cafe at a price of $4.63$ dollars each. If she is offered $\$3.87$, then she will supply $4$ fewer rolls to the cafe. The cafe's demand for jumbo cinnamon rolls is given by $p = D(x) = -0.25x +…
Kevin Diez
- 109
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1 answer
Fastest way to reach amount, save income or invest it all?
This question comes out of a game mod I was playing. In the game you get income every 30 seconds (period = $30s$), in order to increase your income you can send units (sending units will give you 10% of the unit cost in income).
In the game, you get…
Akudo
- 39
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1 answer
long run equilibrium problem
Suppose the market for schools in a small town is of perfect competition. The market demand for school seats, $y$, is given by $y(p)$. The long run average cost function for each school is given by $C(y)$. how do I determine the following?
(i) the…
Jack
- 15
- 2
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Finding threshold value
first and foremost, I want to state that this is a homework question and I'm not sure if its against the rules, but I'm not looking for the answer, I'm just looking for the methodology to solve it as I can't find it anywhere else.
There was a post…
Jeugasce
- 23
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1 answer
Autocorrelation function of MA(1)
I'm very new to this subject. My teacher is following Walter Enders Applied Econometric Time Series, and Autocorrelation functions is something I have to know. However I can´t understand this step made in the book. Thanks in advance.
Considering…
Numbermind
- 1,201
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2 answers
What will happen to a perfectly competitive industry in the long run?
The VCR manufacturing business is perfectly competitive. Suppose that currently firms which manufacture VCR's utilize either technology 1 or technology 2, whose cost functions are given below:
TC1(Q) = 1060-60Q + Q^2
TC2(Q) = 560-40Q+ Q^2
In the…
gul
- 11
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1 answer
Monotonic Transformation and same preferences?
Charles' utility function is U(x;y)=xy. Anne's utility function is U(x;y)=1000xy. Diana's utility function is -xy. Elizabeth's utility function is U(x; y)=-1/(xy+1).Fergie' s utility function is xy-10000. Margaret's utility function is x/y. Philip's…
gul
- 11
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0 answers
Which option will firm chose to minimize costs?
As head of the planning commission of Eastern Motors, your job is to determine where to locate a new plant. The only inputs used in your cars are steel and labor and the production function is Cobb-Douglas where $$f(S,L) = S^{0.5} L^{0.5}$$ where…
gul
- 11
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1 answer
How do I find the present value of investment costs each year
How do I find the present value of investment costs each year and
how is it different from present value of operation and maintenance costs?
Here is my problem in more detail, according to the investment costs
year 0 = \$$12$
year 1 = \$$8$
year 2…
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1 answer
First and second order stochastic dominance given two asset payoffs
Assume that there are $3$ equally likely states of the world. There are two assets, $Z$ and $Y$, with the payoffs $Z = \{10,0,10\}$ and $Y = \{0,10,20\}$. Determine whether there is state-by-state, FSD and/or SSD between these two…
Wolfy
- 6,495
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I cant understand varies jointly
If $m$ varies jointly as $n$ and $p$ is like this
$m = K(n)(p)$
is the $v$ varies jointly as $l$, $w$ and $h$ becomes like this
$v = k(l)(w)(h)$
or it becomes like this
$v = (l)(w)(h)$
Cary Bondoc
- 165
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0 answers
Finding the supply function from a production function
Given the production function $f(z_1,z_2)=\sqrt{az_1+bz_2}$ where $z_1$ and $z_2$ are inputs, $a$ and $b$ are scalars; find the supply function: $y(p)$ output as a function of prices, and the profit function: $\pi(p)$ profit as a function of prices.…
Mitch Hughes
- 199
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Langrange relaxation ?
I am trying to solve the following exercise :
Use lagrange multiplier to find the critical points of Z
$Z=x(y+4)$ constraint $x+y=8$
Then find if a relaxation of the constraint will increase or reduce the value of Z.
I found that the critical point…
prokopis
- 29
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1 answer
Calculating economic profit margins
If a company has a 45600 in sales and their margins are 50%.
How do I calculate the costs?
I thought the margins were defined as
$$
\text{margins} = \frac{\text{profit}}{\text{revenue}} = \frac{\text{revenue}-\text{costs}}{\text{revenue}}
$$
So I…
Jamgreen
- 809
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1 answer
How to calculate y when given the demand function?
Assume an individuals femand function for a good is x = 5 + m/2p where m is income and p is price of x.
Let m = 1000 and p = 8. The individuals demand for x is 5 + 1000/16 = 67.5.
The tutorial I am doing now mentions that this is on y = 460, and…
user2719875
- 201