PS6-10 - University of California Davis Department of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
University of California, Davis Department of Agricultural and Resource Economics ARE 100B Winter 2010 Dr. Larson Problem Set 6 Due Thursday, February 25 at the beginning of lecture Be sure to explain what you are doing and show your work in the numerical problems, and provide a brief but complete answer to the discussion questions. Each part of a problem is weighted equally. Be sure to express the appropriate units for your answers. You should draw graphs for each problem to help guide your analysis. 1. Consider a firm that uses a single variable input, x, to produce output q, with production function q3 l n ( x1 ) . Ϡ (a) Derive the firm's inverse demand (or willingness to pay) for the input x (which will depend on the output price p and the level of x). (b) From the inverse demand, express the firm's direct demand for x as a function of p and w.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/20/2010 for the course ARE 100B 100B taught by Professor Larson during the Winter '10 term at UC Davis.

Ask a homework question - tutors are online