Q6 QUESTION 5Let c(w, y) be a cost function, and let A E (0; 1). We have:Oa. q(Aw'+ (1 -A)w", y) > Ac(w; y) = (1 - A)c(w y)Ob.dAw'+ (1 - A)w", y) < Ac(w;, y) + (1 -A)c(w"; y)c. Not enough informationOd. c(Aw' + (1 - A)w", y) > Ao(w, y) + (1 -A)c(w", y)QUESTION 6Suppose cost function c(w1;w2; y) = w1/2w222. The conditional demand for input 1 is:Hints: (Shephard lemma, pg 5-6 in Chapter cost) The conditional demand for input 1, x1(w1,w2,y) = the derifunction c(w1,w2,y) with respect to w1.a. (1/2)(w2/w1)y?b. (w2/w1)y?E (1/2) (w2/w1)2 y2d. (w2/w1)1/22

Given cost function :- C(w1,w2,y) = w11/2 w21/2 y2

Answered: QUESTION 6 1/2, Suppose cost function…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Malaysians are at their worst financial position in 2022 compared with the last five years, and thelooming recession may push them to the brink with dwindling savings coupled with theaftermath of the Covid-19 pandemic. A recent survey by Malaysian financial services websiteRinggitPlus revealed that 70 per cent of Malaysians saved less than RM500 per month (S$153)in 2022 or did not save at all. “This is compared with 52 per cent of Malaysians saving less thanRM500 monthly in 2021, the largest year-on-year increase since 2018,” the RinggitPlusMalaysian Financial Literacy Survey 2022 showed....Mr Patrick Tay, deals partner, economicsand policy at Malaysia PwC, is not surprised by the decline in savings in 2022. “One reason forthe depleted savings is low wages and higher inflation. But another key reason is that Malaysiansare spending more post-pandemic on holidays or other leisure expenses because some may feelthat they saved during the pandemic, and it is fine to now spend this year…
Suppose that you discount the future hyperbolically. Assume that both B and 6 are strictly greater than zero but strictly smaller than one. At t= 0, you are given the choice between the following three options: a (1 utile at t = 0), b (2 utiles at t= 1), and c (3 utiles at t = 2). As a matter of fact, at t = 0 you are indifferent between a and b and between b and c. (a) Compute B and 6. (b) Suppose, in addition, that at t= 0 you are indifferent between cand d (xutiles at t = 3). What is x?
Thelma is indifferent between $100 and a bet with a 0.6 chance of no return and a 0.4 chance of $200. If U(0) = 20 and U(200) = 220, then U(100) = :
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QUESTION 6 1/2, Suppose cost function c(w1;w2: y) = w1Zw22. The conditional demand for input 1 is: Hints: (Shephard lemma, pg 5-6 in Chapter cost) The conditional demand for input 1, x1(w1,w2,y) the deri function c(w1,w2,y) with respect to w1. a. (1/2)(w2/w+)y? Ob. (w2w1)y? O(12) (w2/w1)1/2 y?