HW_04_REV

# HW_04_REV - using shortcuts) the cheapest production plan...

This preview shows pages 1–2. Sign up to view the full content.

Economics 11, Winter 2010; HW Assignment #4 Due Thursday Feb 4, 3:15PM in Lecture 1. For the quasi-linear utility function U ( x, y ) = x + y 1 / 2 ﬁnd the elasticity of demand for y as a function of p y . 2. For the Cobb-Douglas production function U ( x, y ) = x 1 / 4 y 3 / 4 (a) Sketch and label the isoquants CAREFULLY. (Plot some points.) (b) For input prices p x = 4 , p y = 12 compute directly (i.e., without using shortcuts) the cheapest production plan that yields 100 units of output. (c) For input prices p x = 4 , p y = 12 compute directly the cheapest production plan that yields 1000 units of output. Compare your answer with part 2(b) and explain. 3. For the Cobb-Douglas production function U ( x, y ) = xy 3 (a) Sketch and label the isoquants CAREFULLY. (Plot some points.) (b) For input prices p x = 4 , p y = 12 compute directly (i.e., without

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: using shortcuts) the cheapest production plan that yields 100 units of output. Compare with 2(b) and explain. (c) For input prices p x = 4 , p y = 12 compute directly the cheapest production plan that yields 1000 units of output. Compare with 2(c) and 3(b) and explain. 4. For the CES production function U ( x, y ) = h (1 / 3)2 x 1 / 2 + (2 / 3)2 y 1 / 2 i 2 1 (a) Sketch and label the isoquants CAREFULLY. (Plot some points.) (b) For input prices p x = 4 , p y = 12 compute directly (i.e., without using shortcuts) the cheapest production plan that yields 100 units of output. (c) For input prices p x = 4 , p y = 12 compute directly the cheapest production plan that yields 1000 units of output. Compare with 4(b) and explain. 2...
View Full Document

## This note was uploaded on 04/01/2010 for the course ECON 180052110 taught by Professor Mcdevitt during the Winter '09 term at UCLA.

### Page1 / 2

HW_04_REV - using shortcuts) the cheapest production plan...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online