Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls tell all a,b and c part. pls explain in bit detail. 3. Suppose the borders of a state, B, coincide with the circumference of

image text in transcribed

pls tell all a,b and c part. pls explain in bit detail.

3. Suppose the borders of a state, B, coincide with the circumference of a circle of radius r > 0, and its population is distributed uniformly within its borders (so that the proportion of the population living within some region of B is simply the proportion of the state's total land mass contained in that region), with total population normalized to 1.For any resident of B, the cost of travelling a distance d is kd, with k> 0.Every resident of B is endowed with an income of 10, and is willing to spend up to this amount to consume one unit of a good, G, which is imported from outside the state at zero transport cost. The Finance Minister of B has imposed an entry tax at the rate 100% on shipments of G brought into B. Thus, a unit of G costs p(1+1) inside the borders of B, but can be purchased for just p outside; p(1+1) 0, and its population is distributed uniformly within its borders (so that the proportion of the population living within some region of B is simply the proportion of the state's total land mass contained in that region), with total population normalized to 1.For any resident of B, the cost of travelling a distance d is kd, with k> 0.Every resident of B is endowed with an income of 10, and is willing to spend up to this amount to consume one unit of a good, G, which is imported from outside the state at zero transport cost. The Finance Minister of B has imposed an entry tax at the rate 100% on shipments of G brought into B. Thus, a unit of G costs p(1+1) inside the borders of B, but can be purchased for just p outside; p(1+1)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Growth And Inequality

Authors: Louis-Philippe Rochon, Virginie Monvoisin

1st Edition

1788973682, 978-1788973687

More Books

Students also viewed these Finance questions

Question

Do you include educational topics in your routine staff meetings?

Answered: 1 week ago

Question

1. Discuss the four components of language.

Answered: 1 week ago

Question

a. How many different groups were represented?

Answered: 1 week ago