Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 16, Problem 9E
(a)
To determine
The marginal rate of transformation.
(b)
To determine
The marginal rate of transformation.
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- In a production possibilities curve, is a change from inefficiency to economic efficiency obtained by ...?arrow_forwardWhat is the purpose of co-operative statics in economics? On which basis cooperative statics is limited?arrow_forwardWhy is the production possibility frontier concave? Be sure to explain economic intuition behind that fact.arrow_forward
- a) Explain exchange efficiency and production efficiency and give the main condition for each type of these efficiencies.b) Do you think Pareto Efficiency is enough to explain Pareto Efficiency? If yes, why, if not, why not? Discuss.arrow_forwardEconoline Company produces only two goods and they operate with limited resources. The production manager decides to conduct an analysis of its production possibilities to determine the best use of its limited resources. They create a Production Possibility Frontier (PPF) diagram to represent the maximum combinations of good X and good Y that can be produced with their available resources. As the output of Good Y increases along the frontier, which of the following changes involves the largest opportunity cost? Good Y 20 15 10 5 0 a) 0 to 5 units b) 5 to 10 units c) 10 to 15 units d) 15 to 20 units a Good X darrow_forwardWhat is production efficiency and product mix efficiency? What is the main condition for each type of these efficiencies.arrow_forward
- Explain two ways how the market sometimes fails to produce the optimal mix output?arrow_forwardSuppose Ireland produces only two goods: barley and tablets. The following graph shows Ireland's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. Point Inefficient Efficient Unattainable A B C D E Farrow_forward11 11. Consider the following economy: There are three goods, legume, tillip and quillip, two consumers (called 1 and 2), and two firms (called x and y). Firm x is owned entirely by consumer 1 and makes tillip out of legume according to the simple linear production technology t :::; 3l . That is, for every unit of legume input, this firm produces three times as many (or less) units of tillip. Firm y is owned entirely by consumer 2 and makes quillip out of legume according to the production technology q = 4l. Each consumer initially owns 5 units of legume. Consumer 1 has utility function u1(t, q) = 6 + .4ln(t) + .6ln(q). Consumer 2 has utility function ui(t, q) = 8 +ln(t) + ln(q). (a) What is the general equilibrium of this economy? Assume that firms take prices as given and are profit maximizers, and consumers take prices as given. When you give prices, normalize…arrow_forward
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