Giskard
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If we consider that no one wants an infinite number of any material thing other people can supply and that there are only a finite number of people/firms, the demand function should be bounded. That ...

Dimensional analysis is useful here. $$\text{RER}=1.58\frac{\text{Euro}}{\text{Sterling}}\cdot\frac{110\text{ Euro}}{118\text{ Sterling}}=1.47\frac{\text{Euro}^2}{\text{Sterling}^2}$$ where the unit ...

An answer (I am not sure this is the right one) is if the "positive rate $\rho$" refers to an interest rate. Sometimes interest rates are referred to as discount rates. In this case we would ...

The gist/shortened and generalized version of the above answer: In the context where $Q = \sum_i q_i$ the equation $$\frac{\partial \pi_i}{\partial q_i} + \frac{\partial \pi_i}{\partial Q} = \frac{\... View answer 1 votes How about "value"? Market capitalization seems fine too. View answer Accepted answer 2 votes Since there is no change in consumer preferences, the demand function will not change. The firms supplying skateboards face increased costs due to the wheels being more expensive. This will alter ... View answer 2 votes Unless I misunderstand the question these seem to be complementing events with probabilities p and 1-p. View answer 29 votes prices should have already been set to maximize the trade off between profit-per-sale and volume sold But profit-per-sale depends on costs, which depends on the theft numbers, so if theft increases, ... View answer 13 votes David Petruccelli writes in "Banknotes from the Underground: Counterfeiting and the International Order in Interwar Europe" In December 1925, a group of Hungarian nationalists were caught ... View answer 1 votes why would a player want to balance out the payoffs of another player I don't think anyone is saying that a player wants to do this. But in mixed equilibrium their strategy is such that this property ... View answer 7 votes I can only speculate on what Mill meant, but it seems to me that This is mostly a figure of speech. People sometimes say things like "I have no money, but I am wealthy in other ways", ... View answer Accepted answer 5 votes The following two claims hold in the general n-shop case. Claim 1. In equilibrium a shop closest to an edge (0 or 1) cannot be alone. Proof. Such a shop could gain customers by moving slightly ... View answer Accepted answer 2 votes A cost function can be constant (in q), but this term is not particular to economics. View answer Accepted answer 2 votes Natural monopolies may exist because the cost structure is such that the market could not sustain two firms. This is usually explained by large sunk costs and relatively small demand - if there were ... View answer 2 votes this is for SRAS and AD, but I'm also going to apply this a bit fo microeconomics.. sorry for mixing, but my question applies in both ways, I believe You are applying market equilibrium logic to the ... View answer Accepted answer 3 votes Cobb-Douglas preferences are strongly monotonic over the positive part of the space of baskets, in this case \mathbb{R}_{++}^2. Leontief preferences are the usual example for weakly but not strongly ... View answer 1 votes In the profits of the businesses selling fixed assets and raw materials. View answer 3 votes This idea is known as the Fisher separation theorem. Without the investment opportunity to transfer h units of present day value into w(h) units of future value, the perfect credit market gives us ... View answer 4 votes I will denote the demand function by Q(p) and the inverse demand function by P(q). Then$$ \forall q: Q(P(q)) = q $$so for any h > 0 and q we have$$ \begin{align*} p & := P(q) \\ p_h &...

It was established in the comments that the source of this claim is Tabarrok: The private provision of public goods via dominant assurance contracts via Wikipedia. Tabarrok writes assume that a ...

You seem to be conflating wealth and income. If I am let go from my job, my work income is gone, but not my wealth or my capital income. While most people only have a small amount of money saved (...

Pure strategy Nash equilibria are a subset of mixed strategy Nash equilibria, so as long as your statement a mixed strategy Nash equilibrium always exists and all such equilibria have the same ...

How can someone claim that this return is guaranteed, since we need to use $\mathbb{V}ar(\widetilde{W})$ to measure the utility gain of an individual? Maybe I misunderstand your point, but though \$\...

The next sentence of the question instructs you to ignore the "700 goods and services" and focus only on meat and movie tickets.

You seem to be a native English speaker, and that implies you probably earn more than I do. (Trust me on this.) Do you want to buy my rocking chair, car or flat? While these are all possible options, ...

Yes, whether a good is a Giffen or inferior good depends on "the circumstances", or to be more narrow, it can depend on the income and price levels. Claim 1. Being an inferior good is a local ...

[...] One way to interpret this result is to see our two-stage game as a mechanism to generate Cournot-like outcomes that dispenses with the mythical auctioneer. A justification is given in ...

Your argument is sound (as a first approximation). In fact this is one of the basic examples discussed in chapter 1 of Varian's Intermediate Microeconomics (a standard textbook). Suppose that a ...