C cisco is worried that the new timeline has created

  • No School
  • AA 1
  • 5

This preview shows page 2 - 4 out of 5 pages.

c. Cisco is worried that the new timeline has created an unstable equilibrium. Cisco promises to add you to Team Flash if you can help him understand the new urban dynamics that Flash have created. Draw a generic utility curve and
Image of page 2
highlight the previous equilibrium created in part b). Indicate with arrows the flow of migration to the new long-run equilibrium in Central City and Star City. How many people reside in each city in the long-run? Are the citizens of the region better off or worse off compared to the previous timeline (when there was only one city in the region)? 7) [Previous Exam Question 20 Points] Suppose a region consist of one city, Central City. Central City has the following utility function. () = 5 + 60.5 21.5 And the following Marginal Income Function and the Marginal Cost Function: =60.5 2 = 6 0.5 2 a. Suppose the workforce in Central City is 3 million people. Draw a generic utility curve for a city. Identify the population & utility that maximizes the utility function as well as the population and utility associated with the current equilibrium.
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 5 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors