How to use a Cobb-Douglas function to exhibit decreasing marginal productivity w/ increasing returns to scale?
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I'm supposed to use a Cobb-Douglas production function as an example to show that it is possible to have decreasing marginal productivity of an input and yet have increasing returns to scale.
Please help!
Answer:
a+b >1, a and b are production elasticity of factors, labor and capital.
How to draw an indifference curve when one good preferred over the other?
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The only information given is that good x is 750g of sugar and good y is 250g of sugar. It is assumed that these are goods, and that more is better. How would you draw an indifference curve map to show preferences?
Answer:
plot two points. x=1,y=0 and x=0,y=3.
Connect them with a straight line. This is one indifference curve. B/c 1*750 is same as 3*250.
Draw a few lines parallel to this one. That's your map.
How to imporve chances for being an economist?
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Currently im a sohompore in college with a 3.3 GPA and an economics major. I also have a minor in international relations with a specification in middle eastern politics, history, and culture. Very shortly I will be earning my leadership certificate from my school.
I want to come out of school and get a good paying job, making as much money as I can. What can I do to improve my resume? I wanted to minor in mandarin but my school does not offer it. Any suggestions?
Answer:
well, common cents might tell one to try for an internship with like a hedge fund or financial firm.
to better understand the nature of the human psyche and improve economic reason, I might recommend considering and studying the nature of the stars, moon, Earth, Sun and Black Hole, but that might attract a whole host of devils to your bedside
How to find the socially efficient quantity?
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In the question the need to find the socially efficient quantity demanded, (p is equal to price, q is quantity)
Q demanded = 100-.5P
Q supplied = .5P-40
marginal external cost = 2Q
I already figured out the market level of Q and p which is 30 and a 140 respectively. Not sure how to find the socially efficient level i think you have to add 2Q to the supply function but just not sure how to do that algebraically,
thanks.
Answer:
You can't. The question says nothing about externalities.
If the product has positive externalities, as education does, then the socially efficient quantity would be higher than the open market equations would suggest.
If the product has negative externalities, as narcotics do, then the socially efficient quantity would be lower than the open market equations would suggest.
Classical theory says the market equilibrium is the socially efficient quantity,
http://tutor2u.net/economics/content/topics/competition/efficiency.htm
http://en.wikipedia.org/wiki/Economic_efficiency
but in the real world, that is nonsense.
http://rajivsethi.blogspot.com/2010/02/invincible-markets-hypothesis.html
If market equilibrium really were efficient, then no one could make money on the stock market.
http://en.wikipedia.org/wiki/Efficient-market_hypothesis
How to stop our jobs outsourced Or given to India? Our economy bleeding they are making money ?
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They are stealing our jobs shall we nuke that country or kill Indians and Chinese?
Answer:
no just have a revolution instead
