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
0
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3 answers
Arrow impossibility theorem and social choice.
I have read the Arrow impossibility theorem in Foundations of Mathematical Economics(Michael Carter). It is just too difficult to understand.
So, does Arrow'theorem mean that there is always a dictator in our society,regardless of any system of…
SON TO
- 633
0
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1 answer
$\log(0,05)$ is minus, but $\log(0,04999\ldots)$ is plus?
How is this calculated, and why is this?
We're calculating fixed-rate mortgage, with following formular:
$$
n = 1-\frac{\log(\frac{L\cdot x}{y})}{\log(1+x)}
$$
Where: $L$ is the loan size, $x$ is the interest, $y$ is the amount to pay back per…
Frederik Spang
- 111
0
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1 answer
How to convert non-annual interest rate to annual interest rate?
If a student makes monthly deposits of 1,200 into an account with a nominal annual interest rate of 4.5% compounded monthly, will he have enough after 5 years to purchase a $105,000 property in cash?
I already have the solution.
I just want to…
OMAR
- 105
- 4
0
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0 answers
Basic reality check on a possible error on a paper
In this paper
I may choose between a job that offers $\$12,000$ per year, and another that offers $\$2,000$ per month. Let’s say the jobs are identical in all other respects: I would then choose the one that pays $\$2,000$ per month — not because…
Antoni Parellada
- 8,889
0
votes
1 answer
Microeconomics Doubt about Convexity and Satiation [$u(x_1,x_2)=-x_1^2-2x_2^2+2x_1x_2-10x_1+40x_2$]
I am having some difficulty with this question: $$\text{Prove that } u(x_1,x_2)=-x_1^2-2x_2^2+2x_1x_2-10x_1+40x_2 \text{represents a strictly convex preference and has a global satiation point}$$
I really don't know how to approach this problem. For…
Jackaba
- 83
0
votes
1 answer
Change in the price of an item based on a group's need for the item.
Okay so this is likely to be confusing to read, please bear with me.
The base price of an item is 1440. There are only 6 of these items and there is a population of 20. 10 of the population want or need the item.
Is it possible to up the price by a…
Trumi
- 1
0
votes
1 answer
Determine the linear production function given relationship between labor and capital productivity
Determine the linear production function in the form $Q=aK+bL$ if it takes $3.5$ labor ($L$) hours to produce what a machine ($K$) can do in one hour?
I was given the answer is: $Q=3.5 \times K+L$
But I don't understand why the function is not…
null
- 53
0
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0 answers
How many money per television has been increased?
In a shop where it sells televisions, all of them with a price of 1596\$, they managed to sell 42 televisions. After an increase of price of those televisions, they sold 38 televisions and earned 1140\$. Find the increase of the price of the…
Xetrez
- 358
0
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0 answers
How to determine the value of the fabled "Golden Goose"
Let the slaughter value of the goose be s. Let the net present value of all future eggs be t. A simple approach to valuing the goose might be assumed to be Max(s,t). I have a feeling it is likely more complex. Thoughts?
Bradley Thomas
- 854
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votes
0 answers
based on 4 values calculate price elasticity, QTY, and revenue
I'm calculating price elasticity, QTY, and revenue. But I don't understand why price point 2 + 1,8 + 1,6 etc are negative values.
Can anyone explain the logic here?
I can forward the Excel file upon request.enter image description…
0
votes
1 answer
How much money will be needed to supplement the sinking fund?
The following scheduled of funds is available to form a sinking fund.\begin{array}{|c|c|c|c|}
\hline
Currentyear(n)& $5000 \\ \hline
n+1& $4000 \\ \hline
n+2& $3000 \\ \hline
n+3& $2000\\ \hline
\end{array}
At the end of the 4th year , equipment…
Xhian
- 1
0
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0 answers
How do I change a growth formula to calculate specific values back in time
I am doing a calibration of UK's development using unified growth theory.
My formula for population growth is:
$n = [(\gamma-\lambda)^\alpha]*[(\mu * A^\epsilon)/((\delta * M^\phi)^\alpha * L^{(1-\alpha)})]$
where $A$ and $M$ are…
Emilie
- 1
0
votes
1 answer
Finding the most profitable option
Right now, I have 1€. And I know exactly how to invest that euro to make profit, but I have 3 options:
Invest the euro, and win exactly 1€ (I'd have 2€ then)
Invest the euro, and earn some money between 0,5€ or 1,5€ (I'd have an amount between 1,5€…
Garmen1778
- 2,338
0
votes
1 answer
Compound discount
I am trying to construct an equation for calculating a price, that takes into account compound interest of 10%.
1 item = $10
2 items = $19
3 items = $27.1
so for a given number of items, I can calculate the price.
pingu
- 127
0
votes
1 answer
Determine a total cost of producing x units
marginal cost is $C'(x) = 5 + \frac{10}{\sqrt{x}}$, it is known that producing 100 units costs 950$, how much would it be to produce 400 units?
from that I can calculate total cost function which is $C(x) = 5x + 20\sqrt{x}$
Is it enough to just plug…
tuto108
- 3
- 3