This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Final Exam, Econ 210A, December, 2008 Please use a blue book for your answers. 1) Firm A has production function f ( x 1 ,x 2 ) = x 1 / 2 1 + x 1 / 2 2 2 k where k > 0. a) For what values of k is f a quasiconcave function? For what values of k is f a concave function? Explain your answers. Firm B has production function g ( x 1 ,x 2 ) = ( x 2 1 + x 2 2 ) k/ 2 where k > 0. b) For what values of k is g a quasiconcave function? For what values of k is g a concave function? Explain your answers. 2) Firm A, described in Problem 1, is a pricetaker in the factor market and must pay w 1 per unit of factor 1 and w 2 per unit of factor 2 that it uses. a) Find its conditional input demand functions x 1 ( w 1 ,w 2 , 1) and x 2 ( w 1 ,w 2 , 1) for producing one unit of output. b) Find its conditional input demand functions x 1 ( w 1 ,w 2 ,y ) and x 2 ( w 1 ,w 2 ,y ) for producing y units of output in the case where k = 1. c) Find its conditional input demand functions x 1 ( w 1 ,w 2 ,y ) and x 2 ( w 1 ,w 2 ,y ) for producing y units of output for arbitrary k . 3) Firm B, described in Problem 1, is a pricetaker in the factor market and must pay w 1 per unit of factor 1 and w 2 per unit of factor 2 that it uses....
View Full
Document
 Spring '10
 fallahi

Click to edit the document details