19 Consider a simple two-person, two-good exchange economy. Suppose that total quantities of the goods are fixed at x = y = 1,000. Person 1/3,2/3. If we XB A' s utility takes the Cobb-Douglas form: U₂(X₁,YA) = x2/³y1/³, and person B′ s preferences are given by: Ug(xâ‚ Y³) = x²/³y²/ УА and the equilibrium price ratio p/p, is ___. choose x₁ = x = 500, YA and would be Ув O A 200; 800; 3.2 OB 200; 800; 0.8 OC 800; 200; 0.8 OD 800; 200; 0.2
19 Consider a simple two-person, two-good exchange economy. Suppose that total quantities of the goods are fixed at x = y = 1,000. Person 1/3,2/3. If we XB A' s utility takes the Cobb-Douglas form: U₂(X₁,YA) = x2/³y1/³, and person B′ s preferences are given by: Ug(xâ‚ Y³) = x²/³y²/ УА and the equilibrium price ratio p/p, is ___. choose x₁ = x = 500, YA and would be Ув O A 200; 800; 3.2 OB 200; 800; 0.8 OC 800; 200; 0.8 OD 800; 200; 0.2
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:19 Consider a simple two-person, two-good exchange economy. Suppose that total quantities of the goods are fixed at i = j = 1,000. Person
A' s utility takes the Cobb-Douglas form: U (xy,) = x3y3, and person B' s preferences are given by: U,(xg, Ys) = xy
2/31/3
1/3,2/3. If we
choose
XA
= Xg = 500, y.
and
Ув
would be
and the equilibrium price ratio p,/p, is _ .
O A 200; 800; 3.2
OB 200; 800; 0.8
ос 800; 200; 0.8
OD 800; 200; 0.2
20 The general Cobb-Douglas production function for two inputs is given by q = f(k,l) = AkªLB, where 0 < a < 1 and 0 < B < 1. We defined
the scale elasticity as egt
af (tk,tl)
then
f(tk,tl)'
is
_- The function is concave for a + B – 1.
eq.t
at
O A t(a + B): s
OB a+ Bi <
OC a+B: S
OD t(a + B); <
Transcribed Image Text:14 Assume that a consumer consumes two different goods, and the utility function is u(x)=u (x1, Xɔ) = x1Xɔ, the production function of two
goods is y=1/2+(x-5/8)1/3 at first, then the function of goods 1 changes to y=1/2+(x-325/8)1/3. Assume that her income is M = 18.
Calculate the compensating variation and equivalent variation.
O A cv=16/3-15 EV=15-63
O B
EV=15-6/3 CV=16V3-15
OC
EV=18/3-18 CV=18-6/3
O D
EV=18-6/3 CV=18/3-18
15 Suppose f(x1, X2)= x11/3x2/2,w1=w2=1,for profit maximization, what is the long-run cost function?
O A Cy) = ((2/3)"-1/2y)6/5 +((3/2)1/3y)6/5
O B
C(y) = ((2/3)-1/2y)6/5+((3/2)-1/3y6/5
OC Cy)= ((3/2)1/2y6/5+((2/3)1/3y)6/5
Cy) = ({3/2)^1/2y6/5+ (2/3)-1/3y)6/5
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