3. a) Maximise utility u =0.6,0.5x°y0 subject to the budget constraint 5x+6y=120. Use the Hessianto test the second-order conditionb) A monopolistic producer of two related goods faces the demand functionsy = 55+4p, -8p,His total cost function is TC = 0.2.x² + 2.xy+0.4y. Find the profit maximising level of= 50-2p, +P,output if a production quota requires 2x+ 6y = 300. Use the Bordered Hessian to test thesecond-order condition4 24. Given A =3Finda) the characteristic rootsb) the characteristic vectorsc) Check the characteristic vectors with the transformation matrix

Since you have posted multiple independent questions [3(a) and 3(b) are unrelated and question 4 is…

Answered: . a) Maximise utility u=x060.5 subject…

. a) Maximise utility u=x060.5 subject to the budget constraint 5x+6y=120. Use the Hessian to test the second-order condition

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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