Ch.1-Solution - Microeconomics Answer Key Ch.1 Kohsuke...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Microeconomics Answer Key Ch.1 Kohsuke Kakami 2011 年 6 月 1 日 1.2 The elasticity of substitution ॵ is given by ? = ๥ ?? ¡ 2 ¡ 1 ๥ ?? TRS उ Note that TRS = 𝜕¢ 𝜕¡ 1 ⁄ 𝜕¢ 𝜕¡ 2 ⁄ = ๢ 1 ๢ 2 ૓ ( ¡ 1 ¡ 2 ) 𝜌−1 ച ¡ 2 ¡ 1 = ( ๢ 2 ๢ 1 ૓ TRS) 1 1−𝜌 उ Taking natural log of both sides, this equation can be written as ?? ¡ 2 ¡ 1 = ઘ ઘ £ ¤ ?? ๢ 2 ๢ 1 + ઘ ઘ £ ¤ ?? TRS आ then we have ? = ๥ ?? ¡ 2 ¡ 1 ๥ ?? TRS = ઘ ઘ £ ¤ उ 1.3 𝜀 1 ¥ๅ¦ = 𝜕๧¥ๅ¦ 𝜕¡ 1 ¡ 1 ๧¥ๅ¦ = ๢¡ 1 §−1 ¡ 2 ¨ ૓ ¡ 1 ¡ 1 § ¡ 2 ¨ = ๢ 𝜀 2 ¥ๅ¦ = 𝜕๧¥ๅ¦ 𝜕¡ 2 ¡ 2 ๧¥ๅ¦ = ๣¡ 1 § ¡ 2 ¨−1 ૓ ¡ 2 ¡ 1 § ¡ 2 ¨ = ๣ 1.5 Note that ๧(𝑡? 1 आ 𝑡? 2 ) = [(𝑡? 1 ) 𝜌 + (𝑡? 2 ) 𝜌 ] 1 𝜌 = 𝑡¡? 1 𝜌 + ? 2 𝜌 ¢ 1 𝜌 उ Then the elasticity of scale is ๥๧(𝑡?...
View Full Document

This note was uploaded on 07/09/2011 for the course ECON 101 taught by Professor Suzuki during the Spring '11 term at The University of Tokyo.

Page1 / 3

Ch.1-Solution - Microeconomics Answer Key Ch.1 Kohsuke...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online