Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P=2C+5S. If the price of corn feed is $4 and corn feed is on the horizontal axis, and the price of soybean feed is $5 and soybean feed lies on the vertical axis, what is expansion path? a. the horizontal axis Ob. C=5S/2 Oc. S=2C/5 d. the vertical axis
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- Answer the question based on the following graph. Which of the following statements is entirely correct? Tom's monthly budget constraint 40 •D E nts 20 Number of hamburgers per month O Point E is unattainable and Point D is inefficient. O Both point D and E are unattainable. O Point E is inefficient and Point D is unattainable. O Point A is inefficient and Point E is unattainable. « Previous Next Number of hot dogs per month(a) Explain with the help of a graph the effect of an increase in the relative price of a labor-intensive good on input choice. (b) “Generally, an economy will tend to be relatively effective atproducing goods that are intensive in the factors with which the country is relatively wellendowed.” Explain the above statement with the help of a graph.A two-good economy is in a competitive equilibrium. The price of a piece of candy is $2 andthe price of a desk is $12. The marginal cost of candy is given by MCc = 2Qc and the marginalcost of a desk is MCd = 4 + 4Qd. The current production level of candy is one piece. What is theoutput of desks? A) Qd = 1B) Qd = 2C) Qd = 4D) Qd = 5
- Describe a microeconomic variable for Dairy products?Market Equilibrium A retail chain will buy 900 cordless phones if the price is $10 each and 400 if theprice is $60. A wholesaler will supply 700 phonesat $30 each and 1400 at $50 each. Assuming that thesupply and demand functions are linear, find the market equilibrium point and explain what it means.ANSWER ONLY SUBPART 4 Suppose the economy has 100 units of labor (L) and 100 units of capital (K), and it chooses to allocate three times more labor and capital in the production of good X than in good Y. Suppose also that the production of goods X and Y are represented by the following functions: X = LX0.25KX0.25; Y = 2LY0.25KY0.25. Compute for Lx, Ly, Kx and Ky Calculate the MRTSLK of each firm Is this allocation efficient? How so? How many unit of X and Y will be produced?
- Suppose the economy has 100 units of labor (L) and 100 units of capital (K), and it chooses to allocate three times more labor and capital in the production of good X than in good Y. Suppose also that the production of goods X and Y are represented by the following functions: X = Lx0.25Kx0.25 Y = 2LY0.25KY0.25 Compute for Lx, Ly, Kx and Ky Calculate the MRTSLK of each firm Is this allocation efficient? How so? How many units of X and Y will be produced?4. The estimated supply function for avocados is Q = 58 + 15p - 20pf, where pf is the price of fertilizer. Determine how much the supply curve for avocados shifts if the price of fertilizer rises by $1.10 per lb. Illustrate this shift in a diagram. JLSuppose the economy has 100 units of labor (L) and 100 units of capital (K), and it chooses to allocate three times more labor and capital in the production of good X than in good Y. Suppose also that the production of goods X and Y are represented by the following functions: X = LX0.25KX0.25; Y = 2LY0.25KY0.25. Compute for Lx, Ly, Kx and Ky Calculate the MRTSLK of each firm Is this allocation efficient? How so? How many unit of X and Y will be produced? Suppose the utility function of the two individuals in the economy is given by UA = 2XA0.5YA0.5 ; UB = XB0.5YB0.5 and X and Y are allocated equally between the two individuals. Compute for XA, YA ,XB ,YB Calculate the MRSXY of each individual Is the allocation efficient? How so? Determine if at the current allocation, the efficiency in optimal mix attained. Compute for MRTXY What is the MRSXY? Is optimal mix efficiency attained? How so?
- Suppose Zaharah (Z) and Quah (Q) are now at an allocation bundle where their marginal rates of substitution (MRS) are given by MRS₂ = 10 and MRSQ = 5, respectively. In general equilibrium analysis, this suggests that Andaikan Zaharah (Z) dan Quah (Q) kini berada pada sesuatu longgok alokasi di mana kadar penggantian marginal (MRS) masing-masing adalah MRS₂ = 10 dan MRSQ = 5. Dalam analisis keseimbangan am, ini menunjukkan bahawa a. both individuals have already engaged in voluntary exchange of resources kedua-dua individu telah pun terlibat dalam pertukaran sumber secara sukarela b. Zaharah's situation is better off than Quah situasi Zaharah adalah lebih baik daripada Quah there exists a basis for voluntary exchange for resources between both terdapat asas untuk pertukaran sumber secara sukarela antara kedua-duanya d. both of them are in equilibrium C.ence learning videos X ECON 509 UNIT 1 ASSIGNMENT X File | C:/Users/J... UNIT ONE Answer All questions 1) a) Given the following typical utility curves determine whether they have convex indifference curves (that is, vhether the Marginal Rate of Substitution declines as x increases). U(x,y)=vx -y b) Given the following Constant Elasticity of Substitution production function, show whether or not it is homogeneous, and the scale it exhibits. Q =[L' + K']% 2) Prove that the polynomial P(x) = -2x³ + 2x² + 10x + 6 has a zero at x = 3, and factor the polynomial. 3) The demand and supply functions for two related goods; jeans (x) and shirts(y), are given by the equations: P = 50+Q, P= 40+20, Pa=100-5Q,-Q, P = 240-100, - 8Q, %3D dy sy a) Find the equilibrium price and quantity of jeans (x) and shirts(y). b) Explain with evidence from the system of equations whether the two goods are substitute or complementary 80Ma1. Please fill the following table (you can assume there are only two inputs), write explicitly the arguments of the value and demand functions.