Provide the formulas for the determining optimal basket of (consumption, demanding) 2 goods, given the budget constraints
px + py ≤≤ I
for 3 basic kinds of preferences
When goods are perfect substitutes (linear utility function u(x,y) =ax +by).
Warning: consider 3 possible cases (regarding to relations between MRS and PMRS).
When goods are perfect complements (utility L-shaped function of Koopmans-Leontief u(x,y) = min(ax,by)
For Cobb-Douglas (power) utility function u(x,y) =
xy xy
Answers
MRS = αy/βx = px/py This is the formulas used for determining optimal basket for different preferences when there are budget constraints.
For determining optimal basket of two goods, we have budget constraints aspx + py ≤≤ I, which is used for three basic kinds of preferences. The following formulas are used for determining optimal basket for different preferences:1) When goods are perfect substitutes (linear utility function u(x,y) =ax +by)
When goods are perfect substitutes, it means they are interchangeable. We need to consider 3 possible cases (regarding relations between MRS and PMRS):
Case 1: MRS = PMRS, then px/py = ax/ay = by/bx = py/px
Therefore, x/y = py/px
Case 2: MRS < PMRS, then px/py < ax/ay = by/bx < py/px
Therefore, x/y < py/px
Case 3: MRS > PMRS, then px/py > ax/ay = by/bx > py/px
Therefore, x/y > py/px2) When goods are perfect complements (utility L-shaped function of Koopmans-Leontief u(x,y) = min (ax,by)
When goods are perfect complements, it means they are used together or in fixed proportion.
The optimal consumption bundle for perfect complements is the one that satisfies the following conditions:
x = min(a/b, I/pb) and y = min(b/a, I/pa)3) For Cobb-Douglas (power) utility function u(x,y) = x^αy^β
When preferences follow Cobb-Douglas utility, the optimal consumption bundle satisfies the following conditions:
MRS = αy/βx = px/py
These are the formulas used for determining optimal basket for different preferences when there are budget constraints.
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Related Questions
In what type of foreclosure is the lender required to file suit asking a court to order the borrower to pay the mortgage debt by a certain date or the lender will automatically gain full title to the property
Answers
When a lender files a suit to request a court order authorizing a foreclosure sale, judicial foreclosure is officially started.
Which type of foreclosures exempts the lender from bringing a formal lawsuit?In essence, a non judicial foreclosures means that the lender can foreclose on your house without having to appear in court, as opposed to a judicial foreclosure where the lender must do this in order to get a ruling.
Who may bring a claim for property foreclosure?When a person who is not the mortgage holder redeems a mortgaged property, such as a subsequent mortgagee, a co-mortgagor, a buyer of a mortgaged property, a guarantee of a mortgaged debt, or a mortgagor's creditor,[19] that person assumes the role of the mortgagee.
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Maintreet i engaged in a large project that propoe to redevelop an area that will impact two eparate neighborhood, neighboring retail buinee, and retaurant. It will alo affect the traffic flow of two buy treet. Maintreet etimate there are at leat 30 key takeholder that may influence thi project. How many communication channel will Maintreet have to manage?
Answers
Mainstreet has to manage 90 communication channels.
A project with 20 stakeholders has 190 possible communication channels. This formula takes into account the possibility that a single stakeholder can hypothetically communicate with other stakeholders. The maximum rate at which information can be sent over the channel.
Communication channels show the flow of information between parties. The number of communication channels is calculated based on the number of people talking to each other in the project. Minimizing channels is a best practice to help team members find content quickly and efficiently. Always keep in mind that the maximum number of channels a team owner can set for a member is 10.
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Soft skills 2 sentences that will help
Answers
Answer:
Include the terms most closely related to the job in your resume, especially in the description of your work history. Highlight Skills in Your Cover Letter: You can incorporate soft skills into your cover letter. Include one or two of the skills mentioned here, and give specific examples of instances when you demonstrated these traits at work
Explanation:
why do firms grow in economics
Answers
Explanation:
Firms grow in order to achieve their objectives, including increasing sales and maximising profits
Doyle Company issued $500,000 of 10-year, 7 percent bonds on January 1, 2018. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $125,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, 2018. Required Organize the transaction data in accounts under the accounting equation for 2018 and 2019
Answers
Answer:
Assets = Liabilities + Equity
cash land bonds payable retained earnings
2018 500,000 500,000
2018 -500,000 500,000
2018 125,000 125,000
2018 -70,000 -70,000
55,000 500,000 500,000 55,000
2019 125,000 125,000
2019 -70,000 -70,000
110,000 500,000 500,000 110,000
Revenue - Expenses = Net income
2018 0 0 0
2018 0 0 0
2018 125,000 0 125,000
2018 0 70,000 -70,000
125,000 70,000 55,000
2019 125,000 0 125,000
2019 0 70,000 -70,000
125,000 70,000 55,000
By viewing someone (including yourself) as a New Yorker, for example, you remove that person's individuality and instead, see him or her as a
prototypical representative of the group called New Yorkers. This process then allows you to distinguish New Yorkers from people who live in,
say, Texas or North Carolina. This is an example of
Answers
Answer:
Categorization
Explanation:
Categorization is a process whereby an individual is given or labelled a social identity based on sharing similar characteristics, such as geographical location, with a particular group. In simple terms, an individual is considered and believed to have the same behavior as those group members they have something in common, which could be just geographical location.
Therefore, the scenario of cited in the question above is an example of categorization.
Summarize Fama and French’s findings from their five-factor
model. Compare this new model with the older CAPM and the
Fama-French three-factor models.
Answers
Fama and French's Five-Factor Model The Fama-French Five-Factor Model is an extension of the Fama-French Three-Factor Model, which adds two additional factors to the equation.
The Fama-French Three-Factor Model added market risk, book-to-market ratios, and small stock premiums to the CAPM equation. Their findings from Fama and French's five-factor model are:
1. The model provides a better fit to the empirical data.
2. The high loading of the two new factors SMB and HML reveals that they are major risk factors, as they have a significant impact on expected returns.
3. Size and value premiums are prevalent in stock markets worldwide.
4. Both high and low-beta stocks have higher average returns than those predicted by the CAPM.
5. The effects of all factors remain stable over time. The Five-Factor Model from Fama and French compares the traditional CAPM model and the Fama-French three-factor model to reveal how size, value, profitability, and investment have an impact on expected stock returns.
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which of the following is not an element of structural quality in child care programs
Answers
Answer:
The correct answer is ''Parent-caregiver relationships.''
Question 3 a data analyst wants to convert their r markdown file into another format. What are their options? select all that apply. Markdowndashboardsslide presentationsword documents
Answers
A data analyst wants to convert their R markdown file into another format. R markdown files can be converted into HTML, PDF and Word, slideshow presentations, or dashboards.
Data analysts research information using technology for data analysis and collaborate with their teams to come up with concepts and company plans. Along with expertise in math, statistics, communication, and data handling, you'll also need to be proficient with tools for data analysis and visualization.
Data analyst is a job in IT. A common element of IT jobs is the use of computing technologies. Data analysts use database and computer languages in computer technology to gain commercial insight. Nevertheless, data analysts just work with software and don't deal with mechanical IT support.
For creating repeatable, dynamic reports with R, use the R Markdown format. Use it to add R code and output to PowerPoint presentations, PDFs, HTML documents, Word documents, and more.
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Visit the Web site for a different well-known company, and find the section that lists the company's values. What are the company's values? How do they relate to the products the company sells? Did anything surprise you about the company's values? Why or why not? TIP: If the company's Web site doesn't describe its values, choose a different company. (1-5 sentences
Answers
Visit the Web site for a different well-known company, and find the section that lists the company's values.
I looked through the Microsoft.com company website.
Innovation, diversity and inclusion, CSR, AI, reliable computing, respect, integrity, and accountability are among the core principles highlighted.
Microsoft provides a wide range of goods and services, and all of its values are consistent with the work the business does.
This is not surprising to me because the corporation makes this point in its advertising and other materials.
What are their core values about?Among the mentioned core values are;
Technology can and should be a force for good, and we believe that significant innovation can and will make the world a better place in both large and little ways.
Diversity and inclusiveness are important to our success. To enlighten, challenge, and push our thinking, we draw on the strengths, experiences, and many points of view of our customers and staff.
AI - Our belief is that AI can enhance your talents, free you up to engage in more creative and strategic activities, and assist you or your organization in achieving more when it is created with humans at the heart.
They acknowledge full accountability for all choices, deeds, and outcomes. Therefore, Microsoft provides a wide range of goods and services, and all of its values are consistent with the work the business does.
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Cara makes 152 pies in 8 days. How many pies does Cara make per day if she makes the same number of pages each day
Answers
Answer:
19
Explanation:
152 divided by 8 is 19
Two countries, Country A and Country B, produce petroleum and seafood. A 4-column table has 2 rows. The first column is labeled country with entries Country A, Country B. The second column is labeled Cost (units) with entries 1, 1. The third column is labeled Petroleum (units) with entries 16, 8. The fourth column is labeled Seafood (units) with entries 8, 8. Based on the data in the table, has the absolute advantage in producing petroleum.
Answers
Answer:
Country A
Explanation:
Based on the data in the table, has the absolute advantage in producing petroleum is country A.
What is absolute advantage?
A country has an absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries.
Looking at the table, Country A, produces 16 units of pertroluem while Country B produces 8 units. Thus, Country A has an absolute advantage.
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Assignment 2
(20 points)
Assignment 2: Costs and Profit
Instructions
Answers
I'm sorry, I don't know what you mean. Please attach a photo/add the instructions!! Sorry
Answer:
can u please upload it
Explanation:
What are the strengths/weaknesses of hiring by consensus? (Note: But no more than four interviewers, with outside perspective)
Answers
Answer:
i can't understand bro
Say IAM YOUR BOSS THEN I WILL GIVE YOU BRAINLIEST AND 100 POINTS ADD ME AS YOUR FRIEND
Answers
Answer:
im your boss
Explanation:
What did new york state do in response to the public outrage expressed here over the triangle fire tragedy?
Answers
Appointed a factory commission that developed labor reform.
A factory commission may be a major ad-hoc formal public inquiry into a defined issue in some monarchies. they need been held in the United Kingdom, Australia, Canada, New Zealand, Norway, Malaysia, Mauritiusand Saudi Arabia . A factory commission is analogous in function to a commission of inquiry (or, less commonly, enquiry) found in other countries like Ireland, South Africa , and Hong Kong . it's considerable powers, generally greater even than those of a judge but restricted to the terms of reference of the commission. These powers include subpoenaing witnesses, taking evidence under oath and requesting documents.
The commission is made by the head of state (the sovereign, or their representative within the form of a governor-general or governor) on the advice of the government and formally appointed by letters patent. In practice—unlike lesser sorts of inquiry—once a commission has started the government cannot stop it. Consequently, governments are usually very careful about framing the terms of reference and usually include in them a date by which the commission must finish.
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What are the two macro factors that underlie the trend toward greater globalization?.
Answers
The two critical factors that speak to the increasing trend of globalization are:
Rapid changes in and adoption of technology at a global scale andreduced trade and investment barriersWhat is globalization?This refers to the economic trend whereby products, technology, information, and jobs from across national borders and cultures are spreading all over the world.
It relates to the increasing interdependence of economies and is fostered or enhanced by free trade.
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Question 1 (2 points)
You can own a business that will allow you to compete with others to make a profit.
True or
False
Answers
Answer:
True
Explanation:
The principal purpose of building a business is to make profits. A business must provide solutions to particular needs and wants in the community to attract customers. Different entrepreneurs will offer alternative or similar solutions to a specific situation.
Anyone starting a business will target a particular set of customers. He or she must be ready to complete for those customers with other like-minded entrepreneurs. Competition is good in business as it makes entrepreneurs innovate on the best ways to serve their customers. It also gives customers alternatives.
Okay, Daily Question!
My friend is telling her crush she likes him and she wanted me to come up with a ship-name? I made some suggestions but she didn't like any of them and she gave me a deadline of 3:00 to give her a 'good' one. Here are the names:
Nate/Nathan + Addy/Addison
Have any ideas?
Answers
Explanation:
Naddison
NA
Natson
Naddy
which of the following statements about the statement of cash flows are correct? (check all that apply.)
Answers
The following statements about the statement of cash flows are correct.
It is a detailed disclosure of individual cash flows.The purpose is to report cash receipts and cash payments during a period.The correct options are A and C.
Why is separate disclosure of cash flow?
Separate disclosure of cash flows from investing activities is important because it represents the amount of money spent on resources that will generate future income and cash flows.
Cash flow is a measure of how much money a company brought in or spent over time. On the statement of cash flows, a common financial statement, cash flow is typically broken down into cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities.
Thus, the ideal selection is options A and C.
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Your Question seems incomplete most probably Your complete Question was:
Which of the following statements about the statement of cash flows is correct? (Check all that apply.) Check all that apply. It is a detailed disclosure of individual cash flows. In certain circumstances, it can replace the statement of retained earnings. The purpose is to report cash receipts and cash payments during a period.
Most economists believe that classical macroeconomic theory is a good description of the economy Select one: a. in the short run and in the long run. b. in neither the short nor long run. c. in the long run, but not in the short run. d. in the short run, but not in the long run.
Answers
The classical microeconomics theory is a common theory in economics that often centers around the market. Most economists believe that classical macroeconomic theory is a good description of the world in the long run, but not in the short run
In Classical microeconomic theory , Adam Smith talked about the invisible hand of the market. He explained the reason and when people act out of self-interest, markets often provide goods and services that are demanded by the population.The key principle of the classical theory is that the economy is simply known to be self‐regulating. It state that the economy is always at or near the natural level of real GDP.
The theory was created by Adam Smith and later on economists, such as David Ricardo.
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is he drinking coke or pepsi ?
Answers
a process for identifying, tracking, and developing high potential employees to advance their careers and fill a company’s upper management needs in the future is called:
A. 360 assessment
B. Inclusion
C. Sucession Planning
D. Resource Based View
Answers
The process for identifying, tracking, and developing high potential employees to advance their careers and fill a company’s upper management needs in the future is called succession planning.
Succession planning is a critical component of any company's human resources strategy, as it helps ensure continuity of leadership and a smooth transition during times of change. It also helps to motivate and retain top talent by providing a clear path for career advancement.
It also involves identifying employees who have the potential to fill those positions and providing them with the necessary training and development opportunities to prepare them for future leadership roles.
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The process of choosing an option after evaluating the available information and weighing the costs and benefits of the alternatives is called _____________________________.
Answers
Answer: Decision-Making
Explanation:
Decision-making is the process by which we choose the best perceived alternative to follow after evaluating the available alternatives for their costs and benefits.
These costs and benefits are not only monetary in nature. They can include our values as well as our beliefs and the things we prefer. They also include time as well. Every decision is unique with these and that is why every decision must be evaluated in its own right.
The dividend-growth model may be used to value a stock:
Round your answers to the nearest cent.
$What is the value of a stock if:
D0 = $4.70
k = 13%
g = 8%
What is the value of this stock if the dividend is increased to $5.90 and the other variables remain constant?
What is the value of this stock if the required return declines to 10 percent and the other variables remain constant?
What is the value of this stock if the growth rate declines to 6 percent and the other variables remain constant?
What is the value of this stock if the dividend is increased to $5.80, the growth rate declines to 6
Answers
The dividend-growth model may be used to value a stock. Given:D0 = $4.70k = 13%g = 8%
The formula to calculate the value of the stock using the dividend-growth model is: P0 = D1/(k-g)Where, D1 = D0(1+g)Using the given values, we get: P0 = 4.7(1+0.08)/(0.13-0.08)P0 = $126.53The value of this stock if the dividend is increased to $5.90 and the other variables remain constant is: P0 = 5.9(1+0.08)/(0.13-0.08)P0 = $159.77
The value of this stock if the required return declines to 10 percent and the other variables remain constant is:P0 = 4.7(1+0.08)/(0.10-0.08)P0 = $161.95The value of this stock if the growth rate declines to 6 percent and the other variables remain constant is:P0 = 4.7(1+0.06)/(0.13-0.06)P0 = $74.08
The value of this stock if the dividend is increased to $5.80, the growth rate declines to 6 percent, and other variables remain constant is:P0 = 5.8(1+0.06)/(0.13-0.06)P0 = $111.17Therefore, the value of this stock if the dividend is increased to $5.80, the growth rate declines to 6 percent, and other variables remain constant is $111.17.
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zoom in and examine the locations of faults relative to cities housing, businesses, freeways, and development in general. how would you describe the level of seismic hazard in the bay area?
Answers
The Bay Area is located in the seismically active region of California and is prone to earthquakes and other seismic activity.
Understanding the locations of faults relative to cities, housing, businesses, freeways, and development is key to assessing the potential level of seismic hazard in the region.
To provide an accurate assessment of seismic hazard, it is necessary to zoom in and examine the exact locations of the faults and how they are situated relative to the aforementioned structures.
By doing this, one can gain a better understanding of the seismic hazard present in the Bay Area and take the necessary precautions to protect against potential seismic activity.
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Which of the 4 P's focuses on communicating the value proposition?
Answers
Answer: The marketing mix is most commonly executed through the 4 P's of marketing: Price, Product, Promotion, and Place.
Explanation:
What is your primary source of investment funds?
A. Saving or personal income
B. Pension or retirement
C. Insurance payout
D. Inheritance
E. Gift
F. Sale of business or property
G. Something else
Answers
Answer:
A. Saving or personal income
Explanation:
If a ceo makes a bad decision what will the shareholders do
Answers
When more firms produce the same product, it means that
of that product is produced at a
quality
Answers
Answer:
pure competition
Explanation:
pure competition, is the simplest market structure because a large number of firms produce basically the same product at the same price, restricting the decisions and influence they have on the market. hope it helps
When firms produce the same product also with the same quality and price, it is signified as pure competition.
What is pure competition?Pure competition is a term that describes a market that has a broad range of competitors who are selling the same products. There are a large number of sellers of a product which cannot be differentiated. Therefore, no single firm can have a significant influence on price. Other prevailing conditions are ease of entry of new firms into the market and perfect market information.The best examples of a purely competitive market are agricultural products, such as corn, wheat, and soybeans.
Therefore, pure competition is the correct answer.
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