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
2
votes
1 answer
Production Function
Yes.. I know this is a math forums but there is no economics.stackexchange.com :(.
Since this is also a math problem, I thought I'd post it here. Please help.
An undeveloped economy produces goods and services which rely heavily on natural…
Peter
- 21
2
votes
1 answer
Relation between quasilinear utility and quasilinear function
When we say Quasilinear utility, it is known that function is linear in numeraire. It is expected to be linear in one argument and hence it can be called *quasi*linear. Can any one tell me if there is any relation between this definition and…
Vinay
- 23
- 4
2
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1 answer
Confused in using the salvage value in Rate of Return.
I am trying to solve a rate of return question from the book Engineering Economics by R. Paneerselvam. In that particular problem I am given a salvage value along with other factors. Following are the factors:
i) Initial cost
ii) Annual incremental…
Muhammad Ahmad
- 181
2
votes
2 answers
Long run equilibrium
An industry has a total cost function : TC=$4Q^2+100Q+100$ . Where $Q$ is the quantity produced. They are asking me to find the long run equilibrium price.
How do I find it? What I've found is that i calculate the sratc(short run average total cost)…
user634512
2
votes
2 answers
A loan is to be repaid quarterly for five years that will start at the end of two years. If interest rate is $6$%..
I was helping my comrade answer some questions when we found this question. It goes like this:
A loan is to be repaid quarterly for five years that will start at the end of two years. If interest rate is $6$% converted quarterly,
how much is the…
fitzmerl duron
- 1,495
2
votes
1 answer
Non-core allocations in the 2-fold replica of an economy.
Here's the definitions I'm using, just in case.
Let $E$ be the exchange economy given by agents $A,B$, starting allocations $x_A=(0,1)$, $x_B=(1,0)$ and utility functions given by $u_A=x+y$ and $u_B=x+\sqrt{y}$. It's easy to check that the core of…
caca
- 21
2
votes
1 answer
Application of the Factor–Price equalization theorem (Samuelson) on trade?
I'm trying to understand the factor price equalization theorem by Samuelson. I came across this graph but I don't know how to interpret it. Could anyone give me a short resume on what the graph is saying?
chizwiz
2
votes
2 answers
How can I reconcile these two different equations for "Arc Elasticity"?
Well, I've encountered a problem which seemed me like a wrong answered one so, I Google'd for the formulas of both "Arc Elasticity" and "Arc Elasticity of Demand" So far, I've found myself in some kind of paradox that is caused by some different…
Kerim Atasoy
- 859
2
votes
1 answer
Endogenous covariate in first-difference panel data model
I have a linear panel data set (murder.dta, standard STATA dataset). First I estimate a first difference model. An assumption from this model is that the first differences of the covariates and the first differences of the individual time-varying…
Tomas
- 121
1
vote
1 answer
Horizontal product differentiation problem
It's a version of the Hotelling model (product differentiation).
One firm is located at the beginning of a line between 0 to 3, one at the end of the line (so one at 0, one at 3). There are $b/2$ consumers at 0, and $b/2$ at 3. Over the interval…
martial
- 67
1
vote
1 answer
How do I graph this budget constraint?
How do I graph the following conditions? We are in two good life, spinach and sprouts, spinach on x axis, sprouts on y axis. If you consume 10 or less servings of spinach, you pay \$5 for each. Above for a quantity above 10, the price for EACH of…
keynist
- 13
1
vote
1 answer
0.35 log points to percentage
What is 0.35 log points in percentages? I have no knowledge of this subject at all. From what I've gathered, it should be Percentage change = (e^log points - 1) * 100, so 42%. Is this correct?
Noah D.
- 123
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vote
0 answers
Expected utility
The figure below describes John's preferences over lotteries for three prizes- $1, $2, and $3, where p1 is the probability of winning $1, and p3 is the probability of winning $3. Assume that John is an expected utility maximizer.
a) Is John risk…
1
vote
1 answer
Elasticity of scale from cost function
I have a problem that I just dont seem to figure out how to solve.
Find the elasticity of scale when the following cost function is given:
3(n)^(2/3)(m)^(1/3)y^(4/3)
Where n and m are input prices of the two input factors and y is output.
The…
Johanna W
- 45
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vote
0 answers
Price elasticity over years, semesters, quarters, etc - Midpoint method
I'm trying to calculate price elasticity using the midpoint formula over different years, semesters, quarters, etc.
Taking in consideration the formula:
Midpoint method
Let's say we have this data:
Applying the formula on data
2020 …
Chronicles
- 111