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).

Filter by
Sorted by
Tagged with
1
vote
0answers
179 views

Most important but untested theories in economics? [closed]

In the opinion of the economists here, what are some of the more important theories in economics that remain untested? By untested I mean theories that, though perhaps evaluated using empirical data, ...
1
vote
0answers
49 views

Terminology for separability in price and value

Take an agent with mean-variance utility over something that is uncertain: $$ U(x) = \mu_x^\theta - \sigma_x^\lambda $$ $A\in \{0,1\}$ happens if $U(x)>0$, and $x$ is a random variable $$ A = \...
1
vote
0answers
36 views

How much does a person donate to charity unintentionally [closed]

I am wondering if it's possible to estimate what percentage of a person's salary ends up in a charity even if that person never donates? I am not an economists and I am not sure if that is a valid ...
1
vote
0answers
48 views

Firms Entry/Exit Due to Economic Profit in a Perfectly Competitive Market

According to the textbooks,in a long run equilibrium, the market price will be equal to the minimum point of firm's ATC curve. But every firm's ATC curve will differ i.e each one of them will have ...
1
vote
0answers
83 views

How can I model immigration and xenophobia economically using these equations?

I'm trying to put together a toy model for immigration ($I$), labor prices ($w$), and a measure of xenophobic/nationalistic sentiment ($A$). What I've come up with so far is the following: $$\frac{dI}...
1
vote
3answers
292 views

Time Value of Money Question

For the following Question The Answer is First: Scenario 1 : I wonder how the customer pay as whole 12000 dollar after 12 years for a 8525 dollar product if the interest rate = 0% I think that , ...
1
vote
0answers
85 views

Price discrimination

If I have 3 consumers who I want to sell package 1, 2 and 3 to respectively. Meaning consumer 1 I would like to sell package 1 to, consumer 2 I would like to sell package 2 to and so on. The packages ...
1
vote
0answers
77 views

Increased inflation rate on borrowers and lenders

I'm trying to understand a concept in microeconomics. So if inflation increases while nominal interest rate stays the same, what are the substitution effects and income effects on borrowers and ...
1
vote
0answers
98 views

Metric for evaluating sales with dynamic pricing

Suppose you have a sausage maker. He buys batches of ground meat, then makes and sells sausages. Suppose each batch of ground meat makes N sausages, and each batch has specific level of quality that ...
1
vote
0answers
86 views

Does a social welfare gain cause economic growth? [closed]

For example, if the consumption of goods with negative externalities of consumption were reduced to the socially optimum amount, thus eliminating the social welfare loss, would that directly cause ...
1
vote
0answers
76 views

if you have convex set how can i prove that the function is concave [closed]

Let $x$ belongs to $\mathbb{R}_+^n$ and $θ$ belongs to $\mathbb{R}_+^n$ be the vectors of choice variables and parameters. Consider the problem max $f(x)$ for $x$ where $f:\mathbb{R}_+^n \rightarrow ...
1
vote
0answers
208 views

How does one derive the elasticity of substitution with implicit functions?

I would like to derive the elasticity of substitution. I'm aware that such a thread with a very straightforward explanation already exists, but my case is slightly different and I'm not sure how to ...
1
vote
0answers
22 views

Perfect complement outputs with each output being composed of substitutable inputs

How does one solve the following maximization problem? $\underset{K_1, K_2, L_1, L_2}{\text{maximize }} min\{K_1 + L_1,K_2 + L_2\}$ subject to $c(K_1 + \mu K_2) + \beta c(L_1 + \mu L_2)$ where $c(...
1
vote
0answers
21 views

Microeconomics and management science of professional open source companies?

Are there research (and stories more broadly) about professional open source companies? To what types of products their are appropriate, what licensing schemes to choose? How to managed patents and IP?...
1
vote
0answers
38 views

Is there a way to identify two goods as complement or substitute simple by calculating their MRS? [duplicate]

Suppose, given the utility function $U(x_{1},x_{2})$ with known budget $m$ and price vector $p$. If I calculate MRS from this function, can I get information about whether these two goods are ...
1
vote
0answers
49 views

Can the Goodwin Model of cyclical labor growth be applied in a micro context to specific industries?

I have been doing a bit of research into the Goodwin Model (1967), which generates cycles of economic activity. I understand that this is mostly used in macroeconomics. However, I am curious if this ...
1
vote
0answers
50 views

What is the name for this turn-based property trading game?

Does anyone know what the following allocation strategy is called? Problem: How to allocate N rooms to N roommates? Example: allocate 4 rooms (1,2,3,4) amongst 4 roommates (A,B,C,D) total rent of $...
1
vote
0answers
29 views

Some issues with HRS (Health and Retirement Study) data

I am using the 1992 HRS (Health and Retirement Study) dataset. The codebook is available at http://hrsonline.isr.umich.edu/modules/meta/1992/core/codebook/14_h1.htm I am trying to construct the share ...
1
vote
0answers
34 views

Where to start, to know the cost, in hours of work, necessary to produce one more car (or any other good)?

Let's say I want to buy a car. It costs that, so I can know that, for example, I have to work 3 months to pay for it. But does the car really needs three months of human work to be build? What is the ...
1
vote
0answers
18 views

competitive equilibrium with density functions

Assume there are two competitive markets for goods a and b. Each consumer will either purchase one unit of a and none of b, or one of b and none of a. Consumers never consume both goods. Utilities are ...
1
vote
0answers
381 views

How to compute Social Welfare in this model?

The first part of this scientific article analyzes reward-based crowdfunding. The assumptions are: Seller is a monopolist Unit mass of consumers Unit demand Two periods Individuals are identified by $...
1
vote
2answers
743 views

My Challenge in Econ 101 explanation of Marginal Benefit = Marginal Cost

In Econ 101 textbooks, there are lots of examples and emphasis on marginal analysis leading to the greatest equation of all, $MB=MC$. My challenge is the following and wonder if anyone had a similar ...
1
vote
0answers
242 views

How Would a Firm Which Produces a Giffen Good Maximize Profits?

I am curious as to how a firm which produces a giffen good would maximize profits? Having an upward sloping demand curve seems to imply that we cannot guarantee that there exists a quantity where ...
1
vote
0answers
834 views

Shape of Isoprofit Curves for Strategic Complements

Two goods are strategic complements if: $$\frac{\partial \pi_1}{\partial q_2}>0\;\text{and}\;\frac{\partial \pi_2}{\partial q_1}>0$$ The image below is a picture of best response functions and ...
1
vote
0answers
39 views

What are the currently accepted methods to estimate a firm's productivity?

While there are a lot of methods one can think of, like computing the ratio of profits to assets or profits to sales, apparently it is a difficult problem. It would be useful to know how effectively ...
1
vote
0answers
90 views

Can supply and demand curves be used in electricity modelling? [closed]

Can the (Supply and Demand) curves be implemented in electricity modelling for a country ? How can this be modelled and how can the user set the interaction point between supply and demand?
1
vote
0answers
36 views

How do environmental deregulations push an economy inside its Production Possibility Frontier and make it inefficient?

I read in a textbook that if we plot a PPF with automobile manufacturing and clean air as the axes and the company pollutes the state making clean air (a public good) scarce, automobile manufacturing ...
1
vote
0answers
114 views

Why shouldn't the relative prices change in the Heckscher-Ohlin model?

I'm having trouble with the Rybczynski theorem. Let's say there's a migration to the domestic economy, increasing the Labor endowment. It states that the production of the good that uses labor more ...
1
vote
0answers
20 views

How to consolidate data for “single customer view”, what models to use for representing customer? [closed]

There is trend to arrive at "single customer view" - combine all the available quantitative and qualitative data about single customer. How to organize those data for using in prediction and anylsis? ...
1
vote
0answers
22 views

Is there a simple way to write a model with firms/sectors with different demand elasticities?

I would like to write down a model where there are firms with different demand elasticities: For some firm's total profits increase and decrease a lot with increases and decreases in demand for their ...
1
vote
0answers
257 views

Robinson Crusoe economy with saving and borrowing

I am working with a Robinson Crusoe economy, i.e. an economy in which there is no production and only consumption is possible: there are only two goods, $x_1$ and $x_2$. There is just one individual ...
1
vote
2answers
80 views

Loan money circulation? [closed]

I have a hypothetical situation and couple of such questions. Imagine a situation like this: You need 1000€ a month in order to survive. There are three loan providers you can borrow the amount of ...
1
vote
0answers
137 views

Existence of a Competitive Equilibrium

My professor gives us these conditions for the existence of a Competitive Equilibrium (CE) in a pure exchange economy: $U^i$ is continuous, strictly increasing and strictly concave for all $i$ and $\...
1
vote
0answers
423 views

Calculating a cross price substitution/income effect

I am given a utility function $U(x,y)$, income $I$ and prices $p_x,p_y$. Then the price of $y$ rises to $p_y' = 3 \cdot p_y$. How are we supposed to calculate the substitution effect and income effect ...
1
vote
0answers
58 views

Stiglitz 1976 on irrelevance of corporate financial policy

In this paper, Stiglitz gives a verbal argument as follows: Let us consider verbally what actions of the individuals are required to offset various actions by the firm. Assume the ...
1
vote
0answers
80 views

A high store loyalty indicates what kind of competition among cement retailers selling products of the same brand?

To provide some context, this question occurred to me while I was considering the cement retail market. If one considers retailers selling cement of only one brand, then the concept of brand loyalty ...
1
vote
0answers
61 views

Market with substitutes: Response of prices and quantities

The demand function for theater tickets is $D_t(p_t,p_c)$, where $p_t$ stands for the price of theater tickets and $p_c$ stands for the price of cinema tickets. Supply of theater tickets is described ...
1
vote
0answers
55 views

Separate optimization problem versus one big Lagrangean

I am a bit confused about when to consider a separate optimization problem and when to combine different problems into a single optimization problem. Consider an individual who derives utility from ...
1
vote
0answers
162 views

Microeconomic Model of Knowledge and Technology

Can you point me to any microeconomic models of knowledge and technology? It is intended to be used for simulation. The problem that arises is that you need to simulate the effects of technology on ...
1
vote
0answers
270 views

Convex consumer preferences

Man has blue and red marbles. If he has more red marbles then blue one he wants to exchange one red for two blue($1R:2B$). If otherwise (more blue then red)he wants to exchange one blue for two red($...
1
vote
0answers
1k views

A stable equilibrium with demand and supply?

My doubt pertains to something that is mentioned in the book by Koutsoyiannis for microeconomics (in the chapter for general equilibrium). http://www.upload.ee/image/5306829/1.jpg http://www.upload....
1
vote
1answer
322 views

What is the relationship between indirect utility function and the expenditure function? [closed]

What is the relationship between indirect utility function and the expenditure function? Explain what accounts for this relationship.
1
vote
0answers
299 views

Curvature of Cost and Production Function

I have been trying to understand the duality theory between cost and production function. Please let me know if my following statement is correct; If the cost function $C(w,q)$ is convex in $q$, the ...
1
vote
0answers
115 views

How to calculate rating of merchant in e-commerce [closed]

Could u help me to solve this case? Here's the case.. The first, There are 3 aspects for calculate Rating of each merchant. The scale of rating is from 1 until n ( Based on sum of Merchants). The ...
1
vote
0answers
249 views

Present Value of Costs and Benefits [closed]

The state of Minnesota is considering building a highway through undeveloped wilderness. The construction will take 1 year and the construction costs are estimated at 10 million. The annual routine ...
1
vote
0answers
31 views

Import Substitution Industrialization [closed]

What are the advantages of Import Substitution Industrialization? I had been researching and cant find answers.
1
vote
1answer
5k views

The period of the business cycle in which the real GDP is increasing is called the?

The period of the business cycle in which the real GDP is increasing is called the? And no, this is not an homework question. I'm a college student and we starting our exams soon. I'm just going ...
1
vote
0answers
86 views

how can devaluation of a nation's currency lead to increase in government expenditure, hence facilitating economic growth

how can devaluation of a nation's currency lead to increase in government expenditure, hence facilitating economic growth. I was reading through a textbook and saw that the devaluation of a nation's ...
1
vote
0answers
29 views

Business agreement design - is there science behind this?

I am working on schemas how advertisement space is sold to the ad agencies, ad networks and individual customers. There are lot of questions involved how to design the business agreement. E.g. one can ...
1
vote
0answers
34 views

Question about nested input requirements

In Michael Carter's "Foundation of Mathematical Economics" we have the following exercise: Prove that the input requirement sets are nested. That is, prove that $V(y') \supseteq V(y)$ $ \forall $ $y'...

1
28 29
30
31 32
42