100A Midterm 2A FA07

100A Midterm 2A FA07 - Microeconomics, ECO 100A, Fall 2007,...

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Microeconomics, ECO 100A, Fall 2007, Dr. Famulari Midterm 2A: 175 points total Name_______________________________________Student ID_________________________ Question 1: 55 points Question 2: 50 points Question 3: 50 points Question 4: 20 points Total: 175 points
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Question 1 (55 points): Matt gets utility from bread and cheese. Matt ALWAYS eats 2 slices of bread (B) with one slice of cheese (C). Extra cheese without more bread is of no value to Matt, just as more bread is of no value without the cheese. Matt maximizes his utility from cheese and bread subject to a budget constraint. 1A. (10 points) What type of utility function represents Matt’s preferences(give me a name here)? Write down an expression for Matt’s utility. 1B. (10 points) Draw a picture of Matt’s utility maximizing problem. Identify what you are solving for in this problem and what you know. Be sure to represent Matt’s utility function accurately. 1C. (15 points)
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100A Midterm 2A FA07 - Microeconomics, ECO 100A, Fall 2007,...

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