EBK MICROECONOMICS
21st Edition
ISBN: 8220103960151
Author: McConnell
Publisher: YUZU
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Question
Chapter 10.3, Problem 2QQ
To determine
Changes in marginal cost and marginal revenue.
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1b. (5 pts) Under the 1990 Farm Bill and given the initial situation of a target price and
marketing loan, indicate where the market price (MP), quantity supplied (QS) and demanded
(QD), government stocks (GS), and Deficiency Payments (DP) and Marketing Loan Gains
(MLG), if any, would be on the graph below. If applicable, indicate the price floor (PF) on the
graph.
TP
$
NLR
So
Do
Q/yr
Now, let us assume that Brie has altruistic preferences. Her utility function is now given by:
1
UB (xA, YA, TB,YB) = (1/2) (2x+2y) + (2x+2y)
What would her utility be at the endowment now? (Round off your answer to the nearest
whole number.)
110
Problema 4 (20 puntos):
Supongamos que tenemos un ingreso de $120 y enfrentamos
los precios P₁ =6 y P₂ =4. Nuestra función de utilidad es:
U(x1, x2) = x0.4x0.6
a) Planteen el problema de optimización y obtengan las
condiciones de primer orden.
b) Encuentren el consumo óptimo de x1 y x2.
c) ¿Cómo cambiará nuestra elección óptima si el ingreso
aumenta a $180?
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