Suppose the utility function of a person consuming two commodities X and Y with income Birr 600 is given by U =2xy. If the per unit price of X is Birr 20 and per unit price of Y is Birr 40. a) Calculate the utility maximizing level of consumption of X1 and X2. b) Find the MRSX, Y at the optimum.If the production function of a firm is given by Q=,and the input prices are r = Birr 8 per unit and w = Birr 2 per unit,

Suppose the utility function of a person consuming two commodities X and Y with income Birr 600 is given by U =2xy. If the per unit price of X is Birr 20 and per unit price of Y is Birr 40. a) Calculate the utility maximizing level of consumption of X1 and X2. b) Find the MRSX, Y at the optimum.If the production function of a firm is given by Q=,and the input prices are r = Birr 8 per unit and w = Birr 2 per unit,

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.12P

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