tag:blogger.com,1999:blog-6718520382772817882.post1325238821144076554..comments2015-11-17T20:40:31.116-06:00Comments on The Economics of Organizations - fall 2015: Efficiency and Equity ConceptsProfessor Arvanhttp://www.blogger.com/profile/15256000730474030475noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6718520382772817882.post-61738801399654947122015-09-09T06:08:28.099-05:002015-09-09T06:08:28.099-05:00At a Pareto optimal allocation MRSA = MRSB so YA/X...At a Pareto optimal allocation MRSA = MRSB so YA/XA = YB/XB. That plus the fact that the two allocations add up to the endowment for the economy gives the conditions you need to solve. Professor Arvanhttps://www.blogger.com/profile/15256000730474030475noreply@blogger.comtag:blogger.com,1999:blog-6718520382772817882.post-58103876825122313302015-09-09T06:02:56.538-05:002015-09-09T06:02:56.538-05:00It's the right link. I forgot to edit the sub...It's the right link. I forgot to edit the submission form. Professor Arvanhttps://www.blogger.com/profile/15256000730474030475noreply@blogger.comtag:blogger.com,1999:blog-6718520382772817882.post-36358118025118720172015-09-08T19:55:28.829-05:002015-09-08T19:55:28.829-05:00To find A's allocation in a pareto optimal all...To find A's allocation in a pareto optimal allocation I figured group A and B we need to have the same MRS. How would you do that with algebra? or where can i find an example?Eric Saultershttps://www.blogger.com/profile/04767855473837673704noreply@blogger.comtag:blogger.com,1999:blog-6718520382772817882.post-34604203058986469812015-09-08T15:21:10.748-05:002015-09-08T15:21:10.748-05:00I noticed when submitting this assignment through ...I noticed when submitting this assignment through the web form it was entitled "Efficiency and Equity Concepts fall 2014." The previous assignment with the Excel tutorial had fall 2015 in the title. I was wondering, is the link to the form on this assignment correct? <br />Thank you very much!Laura D'Andrea Tysonhttps://www.blogger.com/profile/13172978446748872980noreply@blogger.comtag:blogger.com,1999:blog-6718520382772817882.post-68870898548859715242015-09-07T18:20:18.536-05:002015-09-07T18:20:18.536-05:00As to the deadweight loss calculation, and the que...As to the deadweight loss calculation, and the question that precedes it about the competitive equilibrium quantity, again the initial situation is disequilibrium. So the quantity 50 arises because the price is 250, above the equilibrium price. You must do a different calculation where supply equals demand to determine the equilibrium quantity. It is greater than 50. When you have determined the competitive equilibrium quantity, I hope it will become apparent to you what area must be computed to determine the DWL.Professor Arvanhttps://www.blogger.com/profile/15256000730474030475noreply@blogger.comtag:blogger.com,1999:blog-6718520382772817882.post-26703260674168632582015-09-07T18:12:54.965-05:002015-09-07T18:12:54.965-05:00Note that the particular numbers you refer to are ...Note that the particular numbers you refer to are specific to your alias. I've reproduced <a href="https://uofi.box.com/s/h1jagnh55v94ukaz3qc06qf6wcets596" rel="nofollow">the graph</a> you are looking at so we can comment on the underlying economics, not the numbers. (Right click on the link to open the graph in another tab.)<br /><br />The situation described in the homework is one of disequilibrium. The price is high, 250, above the equilibrium price, and well above the supply price, which is the minimum price needed to elicit the supply of 50 (112 in the diagram). Your calculation of producer surplus is done assuming the price is the supply price. You are therefore not accounting for revenue the accrues to sellers because the price is well above that. You need to add that additional revenue in to get a correct measure of the full producer surplus.Professor Arvanhttps://www.blogger.com/profile/15256000730474030475noreply@blogger.comtag:blogger.com,1999:blog-6718520382772817882.post-86738688768591787272015-09-07T17:23:36.446-05:002015-09-07T17:23:36.446-05:00Hello, I have two questions regarding the excel ho...Hello, I have two questions regarding the excel homework. The first question is about Producer Surplus. According to what I've learnt in Econ302, I thought the PS should be (112-62)*50/2=1250, but the answer was incorrect, could you explain to me why? Another question is about DWL. When calculating DWL, the question in the homework ask about competitive equilibrium quantity, I thought it was 50, but it was also incorrect. So would please instruct me a little on how to calclate DWL?Daniel Kahneman Econ 490 Fall 2015https://www.blogger.com/profile/04194438938091480893noreply@blogger.com