06:15Done Econ 207 Week 4 Seminar Questio...MEcon 207 2022/23illaQuestions for Week 4 Seminar1. Suppose the only two meat dishes consumed in the United States are flounder and beef. Whatare the likely effects in these markets of a rumor of a major water pollution problem discoveredin the commercial fishing waters? Assume that production resources cannot be shiftedbetween sectors.2. True or false, explain your answer. Ted's initial endowment of cakes is one, and his initialendowment of coffee is six. Sandra's initial endowment is seven cakes and no coffee. "Thisallocation might be both efficient and equitable, based on the Pareto principle."3. In a competitive economy, the marginal cost of producing X is MCx = 20 +5qx. The marginalcost of producing Y is MCy- 10+10qy. Prices are px - 5, and py5. What linearrelationship describes the proportion in which the goods should be produced?1| Page4. Suppose Jenna and Karen both regard peanut butter and jelly as perfect complements at a 1:1ratio. Show, using an Edgeworth box diagram, that if Jenna receives 10 peanut butter and nojelly and Karen receives 10 jelly and no peanut butter, after trading, they will each end up with5 units of each.5. Suppose that David and Harry consume oranges and apples. David views the two as perfectcomplements. Harry views them as perfect substitutes. There are six oranges and six apples in abag. Each person reaches his hand into a bag and selects six pieces of fruit, but they cannot seewhat they have chosen until it is in their basket. If they apply the Pareto criterion to wealthdistribution, what will be their final endowment after trading?

Economic production is a process that is managed and controlled by an institutional unit that uses…

1. Suppose the only two meat dishes consumed in the United States are flounder and beef. What are the likely effects in these markets of a rumor of a major water pollution problem discovered in the commercial fishing waters? Assume that production resources cannot be shifted

1. Suppose the only two meat dishes consumed in the United States are flounder and beef. What are the likely effects in these markets of a rumor of a major water pollution problem discovered in the commercial fishing waters? Assume that production resources cannot be shifted

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 3CQQ

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