ECON 310 Lecture 1: p310x1ans

136 views4 pages

taupeserval94

10 May 2017

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Economics 310: consider the following information for a consumer of pizza and salad: Income = 48: draw indifference curve 1 and the budget constraint for this individual. The tangency occurs between the points ((4,4) and (6,3) on both the indifference curve and the budget constraint. Situation after price increase a z z i. The new utility maximization point occurs along the segment between (2,4) and (3,3), or if we take the mid-point (2. 5,3. 5: example with calculus. Please consider an individual that consumes two goods (x and y) and has a cobb- Mrs = --------------- = ---------------------- = -------------------------- = / (1- ) [y/x] ( u / y ) (1- ) a x y(- ) (1- ) a x y(1- )/y. = (. 4)/(. 6)(y/x: write out the lagrangian for this problem. Maximize = 4 x. 4 y. 6 + (100 - 10 x - 20 y)

Related Questions

True or False. If False explain why it's false.

1. If all prices are doubled an money income is the left the same, the budget set does not change because the relative prices do not change.

2. A decrease in income pivots the budget line around the bundle initially consumed.

3. If preferences are well-behaved, then for any commodity bundle (x1,x2), the set of commodity bundles that are worse than (x1,x2) is a convex set.

4. The marginal rate of substitution measures the distance betwee one indifference curve and the next one.

5. If someone has the utility function U= 2min(x, y), then x and y are perfect complements for that person.

6. At the boundary optimum, a consumers indifference curve must be tangent to her budget line.

7. If two goods are substitutes, then an increase in the price of one of them will increase the demand for the other.

8. An Engel curve is a demand curve with the vertical and horizontal axes reversed.

9. An inferior good is less durable than a normal good.

10. When other variables are held fixed, the demand for a Giffen good rises when income increase.

The following table represents the hourly output and cost structurefor a local pizza shop. The market is perfectly competitive, andthe market price of pizza in the area is $10. Total costs includeall implicit opportunity costs.

Total Hourly Output and Sales of Pizzas	Total Hourly Cost ($)
0	5
1	9
2	11
3	12
4	14
5	18
6	24
7	32
8	42
9	54
10	68

Calculate the total revenue and total economic profit for thispizza shop at each rate of output.
Assuming that the pizza shops always produces and sells atleast one pizza per hour, does this appear to be a situation ofshort-run or long run equilibrium?

sangriamoose629

The table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive, and the market price of a pizza in this area is $10. Total cost includes all implicit opportunity costs. Calculate the pizza shop's marginal cost and marginal revenue at each rate of output and fill in the values in the table.

Total Hourly Output and Sales of Pizzas	Total Hourly Cost ($)	Total Revenue ($)	Total Economic Profit ($)	Marginal Cost ($)	Marginal Revenue ($)
0	6	0	0	-	-
1	10	10	0
2	12	20	8
3	13	30	17
4	15	40	25
5	19	50	31
6	25	60	35
7	33	70	37
8	43	80	37
9	55	90	35
10	71	100	29

How I calculate this?

coralpig724

ECON 310 Lecture 1: p310x1ans

Document Summary

Get access

Related Documents

ECON 310 Lecture 2: p310x2

ECON 310 Lecture 2: l310x2

ECON 310 Lecture 5: l310x5

Related Questions