Assignment 1 2.11 4.10 5.4 5.5 6.12 Solutions

# Assignment 1 2.11 4.10 5.4 5.5 6.12 Solutions - NAME 13...

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14 BUDGET CONSTRAINT (Ch. 2) (e) Let M stand for the number of instances of an ad being read by an M.B.A. and L stand for the number of instances of an ad being read by a lawyer. This budget line is a line segment that lies on the line with equation M +2 L =16 . With a ﬁxed advertising budget, how many readings by M.B.A.’s must he sacriﬁce to get an additional reading by a lawyer with a hot tub? 2. 04 8 1 2 16 4 8 12 Lawyers x 1000 MBA's x 1000 16 c a b 5 10 Budget Set Budget line 2 3 6
NAME 43 4.10 (0) Martha Modest has preferences represented by the utility func- tion U ( a, b )= ab/ 100, where a is the number of ounces of animal crackers that she consumes and b is the number of ounces of beans that she con- sumes.

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Assignment 1 2.11 4.10 5.4 5.5 6.12 Solutions - NAME 13...

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