- Advanced Microeconomic 1 (337.27 KiB) Viewed 71 times
advanced microeconomic：
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answerhappygod
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advanced microeconomic：
advanced microeconomic：
Economy = a Suppose there are 3 types of consumers: u1(x, a) = min(x, 3a), u2(x,b) = (Vx+2/)2, and U3 (y, a) = ya, where x and y are different consumption goods and a and b represent different types of leisure corresponding to A and B types of labor. Each consumer has endowment of 24 hours that can be split between leisure and labor. The economy is socialistic, so all consumers own an equal share of each competitive firm. Firm 1 uses different types of labor to produce the consumption good x with the technology x = (min(A, B))0.75, whereas firm 2 uses labor A to produce the consumption good y with the technology y = $0.9. = Policy: Per unit tax of 10% on the work force paid by the firms, which is equally distributed as a lump sum subsidy to all consumers.
Economy = a Suppose there are 3 types of consumers: u1(x, a) = min(x, 3a), u2(x,b) = (Vx+2/)2, and U3 (y, a) = ya, where x and y are different consumption goods and a and b represent different types of leisure corresponding to A and B types of labor. Each consumer has endowment of 24 hours that can be split between leisure and labor. The economy is socialistic, so all consumers own an equal share of each competitive firm. Firm 1 uses different types of labor to produce the consumption good x with the technology x = (min(A, B))0.75, whereas firm 2 uses labor A to produce the consumption good y with the technology y = $0.9. = Policy: Per unit tax of 10% on the work force paid by the firms, which is equally distributed as a lump sum subsidy to all consumers.