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

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

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

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