# 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).

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### Can I use the released data on AER and JPE in my own research without permission?

I don't think JPE has suggested a specific license. However, the journal did say that the data policy is adopted from American Economic Review (AER). AER did suggest a license of Creative Commons ...
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### Which is a better intermediate micro textbook: Perloff (with calculus) or baby Varian (with calculus)?

I’m currently learning intermediate microeconomics with calculus. I know to take derivatives, partial derivatives, integrals, and multiple integrals, and I know some basic linear algebra (solving ...
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### How to prove monotonic transformation of the function and equivalence?

At the microeconomics course I have to prove monotonic transformation of the function U(x,y) = A(x^a)(y^b) into U(x,y) = (x^0.5)(y^0.5) Since the MRS are ay/bx and x/y resp. I can obviously only ...
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### Population growth and household income

I heard a real estate agent say “as a city’s population increases so will the household income.” He went on and gave an example of how a city had a population growth of 20% and a household income ...
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### How to calculate CRRA bounds from Holt and Laury (2002) type lottery?

Lottery is between: Option A: a certain choice of £5 Option B: £10 with probability 0.1 and £1 with probability 0.9 The probability of receiving £10 increases in each subsequent choice. How do I ...
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### Can we have a Non-Reflexive Preference Relation?

I've been thinking about preferences alot recently and have been specifically thinking about the reflexivity requirement. That is: $$x \succsim x$$ Though this is apparent and obvious, I have been ...
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I have a utility function $U(c,l)={{C^\alpha-1}\over {\alpha}}+{{l^\alpha-1}\over {\alpha}}$ where C denotes consumption, l denotes leisure. What is the economic interpretation of the term $\alpha$ ($\... 1answer 30 views ### Is a resource allocation problem in mechanism design a direct or indirect mechanism? From L. Hurwicz's work and book "Designing Economic Mechanisms," I cannot figure out whether a resource allocation problem in mechanism design is a direct or indirect mechanism. I think the answer is ... 1answer 28 views ### Comparative Advantage Question The theory of Comparative Advantage in production and trade specifies that countries should engage in the production of goods and services for which they have a comparative advantage or lower ... 1answer 54 views ### Pareto distribution and Lorenz curve I am currently studying Pareto distributions and their relation to Lorenz curves but I am having a hard time understanding the concept. If I am understanding correctly, Lorenz curve describes the ... 2answers 73 views ### How can I prove$U(x) = [𝛼_1𝑥_1^𝜌+𝛼_2𝑥_2^𝜌]^{(1/𝜌)}$is equal to Cobb-douglas Utility function when$𝜌\rightarrow0$[closed] This is the question, I have problem with part b, I don't know what function should I use to reach the result thanks in forward 2answers 44 views ### Is it correct to say opportunity cost is cost of giving up quantity of what you are selling? In this video (https://m.youtube.com/watch?v=KEYYN-a_x6E), the instructor talks about the marginal opportunity cost and supply curve. (Begins talking about it at after 1:50). He states that the ... 1answer 52 views ### Difference between Opportunity cost and marginal cost I understand that the marginal cost is the cost of producing one additional unit of a good or service. Is it correct to say that the opportunity cost is part of the marginal cost (I'm trying to ... 1answer 30 views ### which is an example of demand curve that is always inelastic/elastic? Which class of functions have the property of being always elastic?and instead always inelastic? 1answer 73 views ### Competitive vs complete and non-competitive vs incomplete marekts The very insightful questions that arise, when someone studies micro foundation are the following: What is the difference between competitive and complete marekts? When we refer to the first is it ... 2answers 106 views ### Quasi concavity of utility function I am looking for a method to prove that the following function is quasi-concave in$\alpha$(or find conditions under which it is true):$ \pi=F(-k)(f(0)^2-f(h(1-\alpha))^2)+ \frac{1}{2}-\frac{1}{2}...
I am confused about the Short Run Total Cost function of this problem. If the firm's production function is $F(K,L) = K+\ln(L)$ derive the short run total cost function. I was able to solve the ...