**Microeconomics Problem Set**1) Alex spends all his income on blueberries and strawberries. His Marginal Utility of blueberries is $ MU_B = 100 - B $. His total utility of strawberries is $ U_S = 900 + 150S - S^2 $. Find Alex's income if the price of blueberries is $ P_B = $8/\text{kg} $, the price of strawberries is $ P_S = $10/\text{kg} $, and Alex consumes 30kg of blueberries.2) A profit-maximizing monopoly faces a demand curve $ D(P) = 1000 - P $, has variable costs $ VC(Q) = Q^2 $, and fixed costs equal to $30,000. Find this monopoly’s profit.**Explanation of Formulas and Variables:**1) **Alex's Consumption and Income Calculation:** - **Marginal Utility (MU) of Blueberries:** The marginal utility function for blueberries is given by $ MU_B = 100 - B $, where $ B $ represents the quantity of blueberries in kg. - **Total Utility (U) of Strawberries:** The total utility function for strawberries is given by $ U_S = 900 + 150S - S^2 $, where $ S $ represents the quantity of strawberries in kg. - **Prices:** The price of blueberries ($ P_B $) is $8 per kg, and the price of strawberries ($ P_S $) is $10 per kg. - **Consumption:** Alex consumes 30 kg of blueberries.2) **Monopoly's Profit Maximization:** - **Demand Curve (D):** The demand curve faced by the monopoly is given by $ D(P) = 1000 - P $, where $ P $ is the price level. - **Variable Costs (VC):** The variable cost function is $ VC(Q) = Q^2 $, where $ Q $ is the quantity produced. - **Fixed Costs:** The fixed costs are equal to $30,000. - **Objective:** Determine the monopoly’s profit.**Further Steps to Solve Problems:**1) **For Alex’s Income:** - Determine the cost of blueberries Alex consumes: \[ \text{Cost of Blueberries} = P_B \times \text{Quantity of Blueberries} = 8 \times 30

Since you posted multiple questions, we will provide you with the answer to the first question only.…

1) Alex spends all his income on blueberries and strawberries. His Marginal Utility of blueberries is MUB=100-B. His total utility of strawberries is Us=900+150S-S². Find Alex's income if the price of blueberries is PB=$8/kg, the price of strawberries is Ps=$10/kg, and Alex consumes 30kg of blueberries. 2) A profit-maximizing monopoly faces a demand curve D(P)=1000-P, has variable costs VC(Q)=Q², and fixed costs equal to $30,000. Find this monopoly's profit.

1) Alex spends all his income on blueberries and strawberries. His Marginal Utility of blueberries is MUB=100-B. His total utility of strawberries is Us=900+150S-S². Find Alex's income if the price of blueberries is PB=$8/kg, the price of strawberries is Ps=$10/kg, and Alex consumes 30kg of blueberries. 2) A profit-maximizing monopoly faces a demand curve D(P)=1000-P, has variable costs VC(Q)=Q², and fixed costs equal to $30,000. Find this monopoly's profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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