Questions tagged [self-study]

Questions about self-studying economics, including curriculum design, study strategies, resources, etc.

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346 views

Finding subgame perfect equilibrium

The main part of the question is as follows (if you cannot read this, I can immediately write it) My question is how to find the subgame perfect Nash equilibrium for the both cases $\bar{g_2}\ge \...
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1answer
163 views

Profit maximization question

Two firms are in a market together. They produce a product. Total revenue from sales is $y=K+L$ K is the amount of capital L is the amount of labor These two firms each specialized in supplying ...
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1answer
162 views

Kuhn Tucker optimization problem

Assume that the player I select $x_i \ge 0$ at constant cost level $c>0$ The payoff function for player i is $$v(x_i,t)-cx_i$$ where $t$ is technology parameter. The function v(.)is twice ...
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1answer
269 views

Pareto efficient adverse selection

Please look at the following. Question which I posted. I did not understand the answer for the part b - Pareto efficient. I am happy if you explain it in more details. Thank you. Also please ...
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1answer
987 views

price elasticity: Linear regression low r square

I faced an interview question for a job where interviewer asked me suppose your r square is very low (between 5 to 10%) for a price elasticity model. How would you solve this question? Anything that ...
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1answer
973 views

Best micro/macroeconomics books [duplicate]

Does anyone of you could recommend me some good Macroeconomics and Microeconomics books based on your personal experience. I am an engineer and I do not have a background in Economics. I am planning ...
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1answer
7k views

How to derive an aggregate demand function (and optimal uniform price) from two demand functions?

If I have two demand functions $P_1=100-10X_1$ and $P_2=50-10X_2$ and $X_1=40$ and $X_2=60$ with $MC=10$ We have two consumer groups: 1 and 2, where 1 has a higher willingness to pay, and we have ...
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1answer
2k views

the slope of the LM curve [duplicate]

I'm confused because my textbook says the higher interest elasticity of money demand is , the flatter slope of the LM curve is. If the interest changes, then isn't it the movement along the curve in ...
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0answers
22 views

Fluctuations in income

Consider the following income fluctuation problem. An agent lives for two periods, 0 and 1, and faces stochastic income in period 1. We are given this utility maximization problem: $$\text{max}\ U(c_0)...
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0answers
20 views

maximization program with a discount factor in monopoly with learning by doing

I would know something about the multiproduct monopoly. In the case with independent demands and costs dependents, it is in the case with only 1 physical good sold out of 2 periods. For example (...
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0answers
40 views

Will the outcome of a game always be a Nash Equilibrium?

Consider this game between two players. This game has two Nash Equilibria: (U, C) and (D, R). Suppose we ask the players to play this game once. What should our prediction of the game's result be? If ...
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0answers
20 views

Question on Dichotomous system

In The Classic economy, we consider the following macroeconomic model $$Y=F(K,N)$$ where $F_N>0$, $F_K>0$, $F_{KK}, F_{NN}<0$ and $F_{NK}>0$ $$F_N(K/N)=w/p$$ The labor supply function is $$...
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0answers
63 views

Writing constraint

A firm accumulates useful knowledge $k$ by investing in R&D activities. Specifically, if the firm invests $r > 0$ dollars into R&D, the stock of useful knowledge grows by about $2\sqrt{r}$ ...
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0answers
109 views

Revenue maximization problem

There are $N>0$ Households in an economy. The government has aim to maximize a weighted average of income by imposing tax on the rich people and redistribute the tax revenue to the labor ones. ...
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0answers
39 views

Recommendation on economics books for a statistician

I have mainly an statistics/informatics background and i have basically not knowledge in economics. What some good books to star given my background? Edit: My principal interest is stock market ...
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0answers
87 views

Take It Or Leave It Strategy: Social Optimum

Here is what I understood Using Backward Induction, I inferred that buyer offers a price, say, $P$ and the seller will sell only if $P \geq c(I)$. Setting the lowest possible Price that will ensure ...
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0answers
115 views

Signaling questions (separating equilibrium)

Consider two firms Inverse functions: $p(q)=max\{a-q,0\} $ $q$ is total production and a is positive constant. This value of a takes two values ah=2 (high demand) and aL=1 (low demand). Their ...
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0answers
65 views

Maximization under two different states of the world [closed]

What I did is the following one but I am not sure at all: Any help will be appreciated. Thank you.
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1answer
425 views

Revenue maximization

We have two firms with identical cost structure compete in a market Demand function = $p=a-bq$ And $q=q_1+q_2$ They are identical in every way. However, firm 1 maximizes profit and firm 2 ...
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0answers
110 views

Kuhn Tucker optimization problem and game theory [duplicate]

Consider a game with two players, where each player i= 1 ,2 has preferences $u_i$= $s_i^a$$c_i^{1-a}$, where c_i is the consumption and $s_i$ is social interaction. $s_i$ is given by : $s_i$ = $t_i$ + ...
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0answers
54 views

What is the economic situation in Iran? [closed]

I recently investigated a bit about the Iranian economy and did not get an interesting result: Iran's currency dropped to worst low in four decades (Since the Islamic Revolution in Iran). ...
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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 ...
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0answers
125 views

Consumer's maximization problem

I am an undergrad trying to learn the basics of NK models (on my own) and I am having some difficulties understanding the derivation of certain equations. So we have the representative household ...
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0answers
75 views

What addition study subjects are required in the investment field [closed]

Being a CFA student, for example, I feel I need an additional course in statistics and math, but I've never worked in the field. And maybe, as a specialist working in the profession for some time you ...
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1answer
22 views

Contribution Margin [closed]

W LTD wishes to attain a before tax-net profit equal to $20\%$ of sales revenue. Variable costs are $60\%$ of sales and fixed costs are $360,000$. Calculate the dollar amount of sales necessary for ...
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0answers
13 views

How the long lives of oil platforms can account for the volatility in oil prices?

I have a question that asks me to explain how the fact that oil rigs/platforms last for a very long time increases the volatility in oil prices. To me this does not make sense (I just can't ...
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0answers
264 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 ...
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1answer
249 views

Mixed Nash equilibrium

I have game table posted below: $$\begin{matrix} &\#2 \\ \#1 & \begin{array}{c|c|c|c} &D &E &F \\ \hline A &4,4 &6,6 &2,6 \\ \hline B &6,4 &2,2 &0,4 \\ \...
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2answers
359 views

Corner solution of the maximization problem

Answer Hello, I upload the actual question with my 8-pages answer. Please can you check it. Is there a corner dissolution for $c=\gamma$. Please share your ideas. Thanks.
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2answers
255 views

a question on the endogenous growth model

I have such a question on the endogenous growth mode”: In the macroeconomics literature there are various ways in which the growth process in the Ransey-Cass- Koopmans model has been endogenized. ...
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1answer
184 views

Why marginal benefit is decreasing as more and more pizzas are being produced?

I'm taking one of my initial courses in Economics on my own and currently reading Economics by McConnel, Brue and Flynn. On the page 13, the book is trying to explain about Optimal Allocation. They ...
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2answers
59 views

Math needed for economic research [duplicate]

I'm currently studying economics and am interested in getting into economic research. I'm aware of how math based economics research is. I have done some 1st math courses (probability, linear algebra, ...
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1answer
48 views

A question from MWG 2F12

This question is from MWG if walrasian demand function is generated by a rational preference relation then it must satisfy weak axiom. I cannot prove this statement. How can I do?Thanks alot.
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1answer
45 views

Which countries have the comparative advantage in Ricardo's example?

I am a complete beginner here trying to learn through Khan Academy. I found some data that correspond to Ricardo's explanation of comparative advantage. According to Wikipedia "England has a ...
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1answer
55 views

Intertemporal budget constraint notion

Let $W$ denote the investor's wealth $B$ is the the investment in the risk free asset (suppose that the risk free rate is taken to be zero) and $X$ is the investment on the risky security which has ...
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2answers
145 views

Doubt about equivalence relation

In class I was taking notes about equivalence relations defined as: Given a generic relation $R$ on $X$, $xIy$ if both $xRy$ and $yRx$ Now, I don't really understand the following proposition: ...
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1answer
974 views

Rationalizable strategies in a game

Consider a game in which, simultaneously, player $1$ selects any real number $x$ and player $2$ selects any real number $y$. The payoffs are given by: $u_1 (x, y) = 2x − x^2 + 2xy$ $u_2 (x, y) = 10y ...
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1answer
33 views

Transitional Dynamics of consumption per capita in solow model

I can write the transitional dynamics of output per capita as follows $$y=f(k)$$ Take its derivative with respect to time t $$ \dot{y} =f’(k) \dot{k}$$ Divide it by $k/k$ $$ \dot{y} =f’(k) \frac{\dot{...
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1answer
120 views

Find pareto optimal allocations

Consumer 1: $U_1(x_1,y_1)=x_1y_1$ Consumer 2:$ u_2(x_2,y_2)=min\{x_2y_2 , 4\} $ Initial endowments e1=(1,4) and e2=(4,1) I want to find Pareto optimal allocations and show its edgeworth box My ...
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1answer
32 views

Why do the gross return of wealth and wealth move in opposite direction?

I have a short question: Why does the gross return of wealth decrease as wealth increases? Why do the gross return of wealth and wealth move in opposite direction? $$R=1+(a/w^2)$$ where a is non-...
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2answers
478 views

The relationship between profit and wages

It seems obvious that an individual company increases their profits when they reduce wages or increase automation or some such. But if wages fell universally because of this, wouldn't that decrease ...
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1answer
399 views

Preference: Convexity and Monotonicity

I need an example of a Convex, non-monotonic preference Non-convex, monotonic preference I figured that an example of non-convex, monotonic utility preference could be $U(x,y)=x^2+y^2$. For convex, ...
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2answers
906 views

Question on profit maximization with government taxation

(I) A monopolist has a cost function $c(q)=q$. It faces the following demand function $ q(p)=100/p$ for $p\le 20$ and $q(p)=0$ for $p\ge 20$. What are the profit maximizing price and output. (ii) a ...
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1answer
511 views

Question on consumption theory

Question: What my did is I proceed this question until that point. But, I will be happy if help me to solve this question. Thank you.
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2answers
97 views

Philosophy books for decision theory and economics idea

I have learned economics so far, the most astonishing economics' thing is its though which is talkable and visually in the real world or the abstract world that is worth researching and talking. What ...
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2answers
86 views

What gives value to precious, luxury things?

What makes things precious? For example Gold, Silver, Diamonds, etc. Once they were unknown to human being. And now they are the more pricey things. I guess its just the way these things were ...
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1answer
34 views

What is the producer surplus given the price the consumer paid + price they are willing to pay, and the marginal cost of producing the product?

Linda is willing to pay $6 for a cereal box. Linda bought a cereal box for $4. The marginal cost of producing that cereal box ...
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1answer
54 views

Is there a book or notes that explain all about inflation? [closed]

Is there a book or notes or papers (but for easy understanding please) that explain all about inflation? Not at a research level but student level. From what is previously needed to define and ...
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1answer
43 views

Assumptions on preference relation

This question is from Harvard seminar problem set (Q-3 part b) https://www.studocu.com/en-us/document/harvard-university/economics/mandatory-assignments/econ2020a-14-ps01-please-give-as-much-...
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1answer
53 views

Question on overlapping generations

My question is from over lapping generations Question is as follows I found that $$k(t+1)= \frac{\beta(1-\alpha)}{(1+\beta)(1+n)}A(t)k(t)^{\alpha}$$ How can I deal with A(t) to find the steady state $...