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Unformatted text preview: cost: Unit cost = (Total cost) / Q = C(Q)/Q = 10 + (100/Q), which falls with Q. (b) See discussion in Section 5.3.2 (b.1) the likelihood of success falls with higher proportion; (b.2) your likelihood of success rises with higher income per capita; (b.3) your likelihood of success falls with the incomplete or missing market for loans; (b.4) your likelihood of success rises if flow of information is fast. 2. (4 points.) Connect and contrast the following concepts: (a) inequality of current income versus inequality of the lifetime income; (b) functional versus personal income distributions (c) inequality of income versus inequality of opportunities. In each case make sure that you understand each of the concepts and how they are related to each other. Answer: Read the discussion at the beginning of Chapter 6....
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This note was uploaded on 12/02/2010 for the course ECON 3T03 taught by Professor Demidova during the Fall '10 term at McMaster University.
- Fall '10