Questions tagged [economics]

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.

1602 questions
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I need a formula to find this value.

So, I need a formula to help me find out profitable ventures. I am buying items for X and selling them for Y. However, there are fees involved. Everytime I buy an item, an additional 1% of my money goes to a third party. Everytime I sell an item,…
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Eq (4) of Bils and Klenow (2000)

I hope some of you read Economics. I was wondering if anyone can help me in deriving equation (4): $\ln A_{i}\left( t\right) =\beta\ln h_{i}\left( t\right) +\ln\bar{A}\left( t\right) +\xi_{i}\left( t\right)$, in the following article: BILS,…
Ash
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Mixed portfolio

Suppose that Ms Lynch can make up her portfolio using a risk-free asset that offers a surefire rate of return of 15% and a risky asset with an expected rate of return of 25% with standard deviation 5. If she chooses a portfolio with an expected rate…
mkropkowski
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Population and production in a dynamic system

I' trying to solve this problem but would need some help: Let $N=N(t)$ denote the size of a certain population, $X=x(t)$ the total product and $y(t)=X(t)/N(t)$ the product per capita at time $t$. Suppose: $$\frac {\dot N}{N}= \alpha-\beta…
ocram
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I need help with a Business math markdown problem

Company x uses a markup on cost of 55% to establish its retail prices.This pricing rule builds on a profit of 22% of cost. What rate of markdown can Company X offer to break even on the reduced price? I have tried 33 as they are covering the cost to…
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Demand Function

A consumer has the utility function over goods X and Y, $U(X; Y) = X^{1/3}\cdot Y^{1/2}$ Let the price of good x be given by $P_x$, let the price of good $y$ be given by $P_y$, and let income be given by $I$. (a) Derive the consumer’s generalized…
Kolten
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How can I get a longer calculation?

This is the example that my teacher gave in my economic class. I will write the formula and equation with the given answer below. Actually my teacher already calculate the example table of (modified internal rate of return - mirr). The only thing…
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Show preference relation continuity.

We have preference relation $\succeq $ on $X = \mathbb{R}^n$ represented by u(x) = $\sum_{i=1}^{n} x_i$. Show that $\succeq $ is rational, continuous and strong monotonic. So I think I have rationality. Since u(x) and u(y) will be real numbers,…
Joe
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Need to know how to inteprete an inequality

We are looking for a perception-perfect strategy with $s=(0,0,\dots)$ and $\hat s=(1,1,\dots)$ The agent may believe she will enrol tomorrow…
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Marginal products of labor and capital (cobb-douglas)

Given the cobb-douglas function $Y=1.01*K^{0.25}L^{0.75}$ $Y=$output; $K=$capital; $L=$labor How can I determine the marginal products of labor and capital? Not used in this equation. Thanks for the help.
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