Lucky Luke has 100 units of labor, and faces production functions: x = 10Lx and y...
Lucky Luke has 100 units of labor, and faces production
functions: x = 10Lx and y = 6Ly, where Lx and Ly
are the labor allocations. Luke has the utility function u(x,y) =
xy. In this case, what is the optimal basket of goods is ( x, y )
=
Answer= (500, 300)
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Lucky Luke has 100 units of labor, and faces production
functions: x = 10Lx and y...
An economy has a labor endowment of 18 units. Good x has the production function x...
An economy has a labor endowment of 18 units. Good x has the production function x = 10Lx and good y has the production function y = 2(Ly)^0.5, where Lx and Ly are the labor units allocated to sector x and y, respectively. Find the equation for the PPF
An economy has a labor endowment of 24 units. Good x has the production function x...
An economy has a labor endowment of 24 units. Good x has the production function x = 10Lx and good y has the production function y = 2(Ly)0.5, where Lx and Ly are the labor units allocated to sector x and y, respectively. Find output x if a third of labor endowment goes to producing good x. 65 70 72 80
suppose man offers to trade him a unit of x for six units of y. calculate...
suppose man offers to trade him a unit of x for six units of
y. calculate new utilty maximizing production and consumption. show
results in graph
2:49 Expert Q&A + X= (2) Lx y=25(ly) Ulwy) = (xy) 100 unity of Labour (6) broly also What is stility marinzing production & consumption of x ty? Hint: use the relation between MRPT & MRS Expert Answer Kalam9746 4 hours later MRT shows substitution of Y to produce one additional unit of X....
Assume that you have exactly 100 hours of labor to allocate between producing goods X and...
Assume that you have exactly 100 hours of labor to allocate between producing goods X and Y. Your output of X and Y depends solely on the hours of labor you spend so the production functions, qi=fLifor i=X and Y, are: X=LX.5 and Y=LY.5 If you can sell your output of X and Y at the fixed prices PX = 10 and PY = 5, how much of goods X and Y would you produce to maximize your income? (Hint:...
Suppose that Mia has 10 units of labor and her two production functions are x =...
Suppose that Mia has 10 units of labor and her two production functions are x = 6Lx and y = 10Ly. In another economy, Mr. Fantastic has 14 units of labor and production functions, x = 4Lx & y = 6Ly. In this case, the PPF for Mia is ____ and the PPF for Mr. Fantastic is ____. Group of answer choices 4x + 6y = 280; 3x + 2y = 168 4x + 6y = 280; 2x + 5y...
Maria has a utilty function u(x,y) = min{ 2x, 0.5y} and a labor endowment of 120...
Maria has a utilty function u(x,y) = min{ 2x, 0.5y} and a labor endowment of 120 units. The production functions are x = 4Lx and y = 12Ly. In this case, what is the optimal labor that should be allocated to producing good x? 51.4 54.5 56.5 62.3
Donna and Jim are two consumers purchasing strawberries and chocolate. Jim’s utility function is U(x,y) =...
Donna and Jim are two consumers purchasing strawberries and chocolate. Jim’s utility function is U(x,y) = xy and Donna’s utility function is U(x,y) = x2y where x is strawberries and y is chocolate. Jim’s marginal utility functions are MUX=y and MUy=x while Donna’s are MUX=2xy and MUy=x2. Jim’s income is $100, and Donna’s income is $150. What is the optimal bundle for Donna if the price of strawberries is $2 and the price of chocolate is $4?
Suppose James derives utility from two goods {x,y}, characterised by the following utility function: $u(x, y)...
Suppose James derives utility from two goods {x,y},
characterised by the following utility function: $u(x, y) =
2sqrt{x} + y$: his wealth is w = 10 let py = 1:
(a) What is his optimal basket if px = 0.50? What is her
utility?
(b) What is his optimal basket and utility if px = 0.20?
(c) Find the substitution effect and the income
effect associated with the price change.
(d) What is the change in consumer
surplus?
Suppose Linda...
5. A consumer faces a standard linear budget constraint and has preferences that can be represented...
5. A consumer faces a standard linear budget constraint and has preferences that can be represented by the following utility function: U(x,y)= x + 2 In y. a) Suppose that we have an interior solution. Derive the demand functions for x and y. Denote the price of x by p,, the price of y by p,, and income by m. b) Is it necessarily the case that the optimal consumption is interior the way we assumed in part a)? If...
1. Ms. Rada has a utility function u(x,y) = xy and an income of $250. Suppose...
1. Ms. Rada has a utility function u(x,y) = xy and an income of $250. Suppose the price of good y is $4 a unit. Find the consumer’s demand function for good x. (a.) x* = 125/(4Px) (b.) x* = 125/Px (c.) x* = 250/Px (d.) x* = 250/(0.5Px) 2. A consumer has a demand curve of X = 550 – 2.5Px– 10M, where Pxis the price of good X, and M is income. In this case, good X is...
suppose man offers to trade him a unit of x for six units of
y. calculate new utilty maximizing production and consumption. show
results in graph
2:49 Expert Q&A + X= (2) Lx y=25(ly) Ulwy) = (xy) 100 unity of Labour (6) broly also What is stility marinzing production & consumption of x ty? Hint: use the relation between MRPT & MRS Expert Answer Kalam9746 4 hours later MRT shows substitution of Y to produce one additional unit of X....
Suppose James derives utility from two goods {x,y},
characterised by the following utility function: $u(x, y) =
2sqrt{x} + y$: his wealth is w = 10 let py = 1:
(a) What is his optimal basket if px = 0.50? What is her
utility?
(b) What is his optimal basket and utility if px = 0.20?
(c) Find the substitution effect and the income
effect associated with the price change.
(d) What is the change in consumer
surplus?
Suppose Linda...
5. A consumer faces a standard linear budget constraint and has preferences that can be represented by the following utility function: U(x,y)= x + 2 In y. a) Suppose that we have an interior solution. Derive the demand functions for x and y. Denote the price of x by p,, the price of y by p,, and income by m. b) Is it necessarily the case that the optimal consumption is interior the way we assumed in part a)? If...
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