Search & Filtering
Let X = {x1, x2, x3} be the set of three alternatives and ∆X = {(q1, q2, q2) | q1 + q2 + q3 = 1, q1, q2, q3 > 0} be the set of corresponding lotteries. Moreover, let u : X → R be a utility function on X and let U : ∆X → R be a utility function on the set of lotteries of X.
Exercise 1. (5%) Let % be the preference relation represented by U. Verify or falsify the following statements: The preference relation % is (a) complete; (b) transitive; (c) acyclic. Exercise 2. (5%) Assume that U(1, 0, 0) = U(0, 0.5, 0.5) = 1 and U(0, 1, 0) = U(0.5, 0, 0.5) = 0. Is it possible that the preference relation represented by U satisfies the independence axiom?
demanded, P is price per unit. M is income, and PR the price of a related good. The estimated the
valueS of M and PR will be Rs 3200 and Rs 4, respectively.
The firm's estimated average variable coSt function IS; AVC = 500 - 0.03Q + 0.000001Q2
a. Find the profit maximizing level of output of the firm and the price to charge.
b. Should the manager continue production or shut down? Explain your answer.
c. Find the level of output at which the average variable cost is at its minimum.
When a perfectly competitive industry is in a long-run equilibrium, all the firm in the industry will
Given the following functions;
TC= 50Q+20Q2(Cost Function)
P= 400-20Q (Demand function)
Determine the profit maximizing level of price and output.
A. Determine budget equation?
B.draw budget line?
Given a short run cost function as T C =1 /Q 3 (3 is under subscript ) - 2Q 2(2 is under subscript ) +60Q+100 , find the minimum value of AVC and MC
