Pat is a representative consumer in the neighbourhood market for Jr Chickens. Their utility function for JCs and all other goods is given by: U(JC,Y) 10JC-(JC^2)/2+Y MUJC = 10-JC MUy=1 Every McDonald's franchise has the following production function for Jr Chickens: JC 4K^(1/2)+2L^(1/2) MPK = 2/K^(1/2) MPL = 1/L^(1/2) a. Derive Pat's Marshallian demand for Jr. Chickens. You can assume Pat has a trust fund and can always afford it. b. There are five other people in the neighbourhood who like Jr Chickens. What is the neighbourhood's market demand for JCs? C. What is the price elasticity of demand when P = 1, 5 and 9? Note: dQ/dP = -5. d. Derive the conditional factor demands for K and L for a McDonald's franchise.

Pat is a representative consumer in the neighbourhood market for Jr Chickens. Their utility function for JCs and all other goods is given by: U(JC,Y) 10JC-(JC^2)/2+Y MUJC = 10-JC MUy=1 Every McDonald's franchise has the following production function for Jr Chickens: JC 4K^(1/2)+2L^(1/2) MPK = 2/K^(1/2) MPL = 1/L^(1/2) a. Derive Pat's Marshallian demand for Jr. Chickens. You can assume Pat has a trust fund and can always afford it. b. There are five other people in the neighbourhood who like Jr Chickens. What is the neighbourhood's market demand for JCs? C. What is the price elasticity of demand when P = 1, 5 and 9? Note: dQ/dP = -5. d. Derive the conditional factor demands for K and L for a McDonald's franchise.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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