Questions tagged [microeconomics]

Microeconomics is a branch of economics that studies the market behavior of individual actors (usually firms and consumers) and the aggregation of their actions in different institutional frameworks (usually the market).

1,451 questions
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Asymmetric Nash Bargaining

The Nash bargaining solution selects the unique solution to the maximization problem $\max_{s_1, s_2 } (s_1 - d_1) (s_2 - d_2)$ such that the solution satisfy the following axioms : Invariance ...
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India as center region of foreign powers for storing nuclear and space weapons

India have recently imported many billion dollars worth weapons from a number of foreign countries which are against sanctioned loans.will it not adversely affect India's economy?It seems India is ...
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Integrability of Demand

I wondered if someone would be willing to provide an intuitive presentation of the so-called integrability of demand/integrability conditions. My own knowledge of these conditions is that they're ...
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Under what conditions should the External Rate of Return (ERR) be used instead of Net Present Worth (NPW) and vice versa?

I have just read the concept of both Net Present Worth (NPW) and the External Rate of Return (ERR). This is what I have understood of these two values: NPW is the net discounted value of all the cash ...
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If $X$ is a Giffen good then $Y$ must be a normal good

While going through some problems as part of self-study I encountered the following True/False question: Q. Steven only consumes two goods: $X$ and $Y$. If $X$ is a Giffen good for Steven, then $Y$ ...
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What is the Walras law vs first welfare theorem

As far as I know, both of the first welfare theorem and the Walras law are closely tied to the invisible hand. what is the difference between them? thank you very much for your help
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Envelope Theorem in Hopkins and Kornienko (2010)

This is from Hopkins and Kornienko (2010). In this model, $x$ is investments, $s$ is status, and $y=z-x$ is leisure, where $z$ is endowments. $x(r)$ is the optimal investment, and the relative ...
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Have any economics papers used unified cure models?

Does anyone know if there are unified cure models (aka split population models) in time-until-employment studies that combine the mixture cure approach with the promotion time approach as described in ...
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Perfectly competitive constant MC Questions [closed]

If I have a market in which I have constant MC, no fixed costs, and perfect competition- when would it make sense for a new firm to enter the market(granted they have the same technology)? Would I ...
I have the following equation $$Q_1(K, L) = AK^α L^β, A, α, β > 0$$ I'm asked to derive the isoquant curve which yields the following diagram: Could anyone please explain to me how the form of the ...