EXPLORING ECONOMICS
8th Edition
ISBN: 2818000015614
Author: Sexton
Publisher: SAGE
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Chapter 4, Problem 4P
To determine
The
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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?
Please draw the graph for number 4 and 5, I appreciate it!!
not use ai please
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- In a classic oil-drilling example, you are trying to decide whether to drill for oil on a field that might or might not contain any oil. Before making this decision, you have the option of hiring a geologist to perform some seismic tests and then predict whether there is any oil or not. You assess that if there is actually oil, the geologist will predict there is oil with probability 0.85 . You also assess that if there is no oil, the geologist will predict there is no oil with probability 0.90. Please answer the two questions below, as I am trying to ensure that I am correct. 1. Why will these two probabilities not appear on the decision tree? 2. Which probabilities will be on the decision tree?arrow_forwardAsap pleasearrow_forwardnot use ai pleasearrow_forward
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