ARME 608 Final Exam Fall 1997 1. In ocean fishing (in a region of the ocean), the number of fish caught is an increasing but first convex and then concave function of the number of fishing boats. How many fishing boats will be used if each boat is independently owned? How many boats would be used if the fisherman and fisherwomen form a cooperative? How many boats will be used if the fishing rights are given or sold to one individual? (Assume constant output price and input prices). 2. If marginal cost decreases as the price of some input factor increases, then that factor must be inferior. (True or False, Explain). 3. Can the following function be used as a profit function? ∏ = ap - b 1 r 1- b 2 r 2- br 2p 31 2- br 2p 42 2- brr p 512 4. Is the Cobb-Douglas production functionally separable such that some inputs can be aggregated into a composite input? 5. Show how linear programming models: a) product-product decisions b) factor-factor decisions c) factor-product decisions 6.
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This note was uploaded on 08/25/2010 for the course ECONOMICS 408 at Cornell University (Engineering School).