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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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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2 answers
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
- 121
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1 answer
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
- 1,131
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1 answer
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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1 answer
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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votes
2 answers
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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1 answer
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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1 answer
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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1 answer
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…
wwokkie
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1 answer
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.
DC22287
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