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8. Which one of the following must be held constant in drawing up a production-possibility frontier? A) The total resources. B) The quantity of money. C) Money income. D) Prices. E) The allocation of resources among alternate uses.
Please see attachment
** Please see the attached file for fully formatted problem description ** --- Define Risk Aversion. Consider a risk-averse von Neumann-Morgenstern individual having wealth w who must decide whether to accept or decline a simple gamble offering a chance of winning or losing a small amount of wealth h with probabilities p an
Consider the problems of maximizing u(x) subject to px = y and maximizing v(u(x)) subject to px = y, where v(u) is strictly increasing over the range of u. Prove that x* solves the first problem if and only if it also solves the second problem. If this proof is in the Mas-Collel text or Varian text, let me know and I can loo
23. How do you expect the boundaries of firms doing business in developing countries to change, as these countries continue to grow and prosper? [hint: how will the demand for specific assets change in these countries?]