Scribd Logo
Upload

Welcome to Scribd!

  • 12 views

    HW Chapter4

    Uploaded by

    nhungtran.050611
    ...

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    HW Chapter4

    Uploaded by

    nhungtran.050611
    12 views5 pages
    ...

    Original Title

    HW_Chapter4

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    ...

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    12 views5 pages

    HW Chapter4

    Uploaded by

    nhungtran.050611
    ...

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 5

    EXERCISES AT THE END OF CHAPTER 4

    4.1. Consider two types of goods, X and Y, in the market with prices per unit of X and Y
    being 50 USD and 200 USD, respectively. Assume the utility function is given by
    U = (x +30)y; x  0, y 0 (x, y are the quantities of goods X and Y, respectively).
    Choose the bag of goods (x,y) to maximize utility under the consumer’s bugdet constraint
    of 1850 USD. Determine the corresponding Marshallian demand for X and Y.

    4.2. Consider two types of goods, X and Y, in the market with prices per unit of X and Y
    being 100 USD and 25 USD, respectively. Assume the utility function is given by
    U = x(y + 15); x  0, y 0 (x, y are the quantities of goods X and Y, respectively).
    Choose the bag of goods (x,y) to maximize utility under the consumer’s bugdet constraint
    of 925 USD. Determine the corresponding Marshall demand for X and Y.

    4.3. Consider two types of goods, X and Y, in the market with prices per unit of X and Y
    being 500 and 400 (units: thousand dong), respectively. Assume the utility function is given
    by U = (x + 4)(y +5); x  0, y 0 (x, y are the quantities of goods X and Y, respectively).
    Choose the bag of goods (x,y) to maximize utility under the consumer’s bugdet constraint
    of 4 million dong. Determine the corresponding Marshallian demand for X and Y.

    4.4. Suppose a consumer has a utility function U = 12xy + 8x (x  0, y 0) for two types of
    goods, X and Y (x,y are the quantities of goods X and Y, respectively). The prices of the
    two goods are p1 = 4 USD and p2 = 9 USD. Assume the consumer wants to achieve a fixed
    level of utility U0 = 10800. Choose the bag of goods (x,y) to minimize cost and determine
    the corresponding Hick demand.

    4.5. Suppose a consumer has a utility function U = xy + 2y (x  0, y 0) for two types of


    goods, X and Y (x,y are the quantities of goods X and Y, respectively). The prices of the
    two goods are p1 = 18 USD and p2 = 8 USD. Assume the consumer wants to achieve a fixed
    level of utility U0 = 1800. Choose the bag of goods (x,y) to minimize cost and determine
    the corresponding Hick demand.
    4.6. Given the consumer utility function U = U(Q1, Q2) = Q1Q2 + Q1 + 2Q2 for the quantities
    demanded of two types of consumer goods, Q1 and Q2. Determine the demand for these
    goods to maximize utility, knowing that the selling prices for the two types of goods are 2
    USD and 5 USD, and the consumer’s income is 51 USD.

    4.6 Given the utility function U = U(Q1, Q2) = Q10,6.Q20,25 for the quantities demanded of
    two types of consumer goods, Q1 and Q2. Determine the demand for these goods to

    1 GV: HUYNH TO UYEN


    maximize utility, knowing that the selling prices for the two types of goods are 8 USD and
    5 USD, and the consumer’s income is 680 USD.

    4.7. Consider a firm with fixed costs (unit: million dong) 𝐶0 = 400, the rental price of
    capital is wK = 2 (million dong), and the rental price of labor is wL = 0.4 (million dong).
    Suppose the firm has a Cobb-Douglas production function Q = 120 and the market price of
    the product is p = 1 (million dong).
    a) Determine the cost, revenue, and profit functions of the enterprise.
    b) Calculate the marginal cost, marginal revenue, and marginal profit with respect to the
    amount of capital and the amount of labor at K = 54, L = 16.
    c) Calculate the elasticity of cost, revenue, and profit with respect to the amount of capital
    and the amount of labor at K = 54, L = 16.
    4.8. Consider a firm with fixed costs (unit: million dong) CO = 200, the rental price of
    capital is wK = 1 (million dong), and the rental price of labor is wL = 0.2 (million dong).
    Suppose the has a production function Q = K(L+10) and the market price of the product is
    p= 0.5 (million dong).
    a) Determine the cost, revenue, and profit functions of the enterprise.
    b) Calculate the marginal cost, marginal revenue, and marginal profit with respect to the
    amount of capital and the amount of labor at K = 100, L = 20.
    c) Calculate the elasticity of cost, revenue, and profit with respect to the amount of capital
    and the amount of labor at K = 100, L = 20.
    4.9. Suppose a consumer buys two types of goods X and Y. The utility function for these
    goods is given by ; where x, y are the quantities of the respective goods.
    a) Find the marginal utility functions and the cross-elasticity for each type of good.
    b) Calculate the marginal utility value for X when the consumer purchases 3 units of each
    type of good.
    4. 10 (p417)

    2 GV: HUYNH TO UYEN


    4. 11 (p416)

    4.12 (p4.18)

    4.13 (p.444)

    4.14 p(458)

    3 GV: HUYNH TO UYEN


    4. 15 (p.441)

    4. 16 p(458)

    4. 17 p(469)

    4 GV: HUYNH TO UYEN


    4.18 p(469)

    4. 19 p(470)

    5 GV: HUYNH TO UYEN

    You might also like