2009년 중간고사 이인호 Midterm_Exam_2009.pdf

# 2009년 중간고사 이인호 Midterm_Exam_2009.pdf -...

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212.201 Microeconomics 2009 Fall Prof. In Ho Lee Midterm Exam (Date: October 27) 1. A °rm uses a single input to produce an output according to the production function f ( x ) = 4 p x where x is the number of units of input. The output sells for \$60 per unit. (a) Write down a function that states the °rm±s pro°t as a function of the amount of input. (b) What is the pro°t maximizing amount of input? Output? How much pro°t does the °rm make when it maximizes pro°ts? (c) Suppose now the °rm is taxed at 50% of its pro°ts. Write down its after tax pro°ts as a function of the amount of input. What is the pro°t maximizing amount of output? How much pro°t does it make after taxes? How much tax revenue does the government get? 2. Morris and Philip consume wine and books, Morris has an initial endowment of 60 books and 10 bottles of wine, while Philip has an initial endowment of 20 books and 30 bottles of wine. They have no other assets and have no other people to trade with.

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