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- Course: Introduction to Microeconomics1. Our students Francisca and Javier have a heated discussion about Axioms of Preference and Rational Consumer Choice, from which they raise questions and reflections regarding topics seen in class. You are asked to comment on each of these statements, justifying whether statement is true, false or uncertain. You should be supported by graphic analysis as appropriate.Statements that our students arrive at are as follows:(a) To have consistent ordering and represent convex indifference curves, only Axioms of order (Monotonicity) and Transitivity are needed.b) For a consumer to find equally preferred baskets from an initial basket, he must establish a substitution relationship between goods to stay on same indifference curve.c) Given consumer's income, the best he can do with respect to his consumption decision, is to find a situation where marginal utility per weight spent on good X is equal to marginal utility per weight spent on good Y.Who detected the endowment effect first? Tell us about the design of the experiment and its main conclusions.The dung beetle gets utility from consuming mud balls which are made out of mud and dung. Both inputs are measured in grams and perfectly divisible. Its utility from balls which contain m grams of mud and d grams of dung is u(m, d) = md. For reasons to do with the structural integrity of the balls, however, it cannot combine the two ingredients in very different quantities. The ratio of mud and dung it uses must fall between 1 : 2 and 2 : 1. Excess amounts of either ingredient are discarded at no cost to the dung beetle. (a) How much utility does the beetle get from the following bundles of mud and dung, (m, d)? i. (2,16). ii. (4,8). iii. (4,16). iv. (6,16/3). (b) Draw an indifference curve between mud and dung that represent the preferences of the dung beetle and gives the beetle a utility level of 32.
- Now assume we can derive an economic analysis from the biological relationship. Fisherman select the number of boats to operate - boats will be the choice of EFFORT. Boats Total Harvest 0 (tons) 0 100 200 300 400 500 600 700 800 900 1,200 2,200 2,800 3,000 2,800 2,400 1,600 800 Suppose the price of fish is $1,000 per ton. Suppose the cost to operate a boat for a year is $4,000. Construct a graph showing the total revenue and cost of the fishery. 0 What is the highest profit that can be earned, and how many boats are used for this? ( What is the corresponding long-run stock level associated with the profit-maximizing choice of effort? What is the profit earned if fisherman harvested the MSY? What number of boats are used in open access?Which of the following is true? Neither FGT(α=2) nor FGT(α=3) satisfy the transfer sensitivity axiom. FGT(α=3) satisfies the transfer sensitivity axiom but FGT(α=2) does not. FGT(α=2) satisfies the transfer sensitivity axiom but FGT(α=3) does not. Both FGT(α=2) and FGT(α=3) satisfy the transfer sensitivity axiom.Question Solve the following maximization problem graphically. P(x, y) = 16+ x + 4y; subject to: Provide your answer below: f(x)= 4x + 6y≤ 72 4x + 2y 2 24 x > 3 y> 4
- Why would I use a one-tailed (directional) hypothesis? What are the limitations of using a one-tailed hypothesis?Only 3The manager of a hockey arena is pricing tickets for an upcoming game. She knows that if she increases the ticket price she will sell fewer tickets. The situation is modelled by the relation, R = -88.9p^2 + 2667p, where R is the total revenue and p is the ticket price, both in dollars. The graph is given.
- A consumer has preferences over two goods, carrots and turnips, each measured in kilograms. For each of the following scenarios, identify which, if any, of the standard assumptions of preferences are violated. (a) The consumer will never eat more than ten kilograms of carrots per day. (b) The consumer cares only about the total weight of the two vegetables consumed, and always prefers more to less. (c) The consumer cares only about the product of the respective weights of the two vegetables consumed, and always prefers a greater product to a lesser one.explain Stolper-Samuelson Theorem with diagramAssistance please.
