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Unformatted text preview: j ⊂ R 2 . Y j = { ( x, y )  x ≤ , y ≥ , y ≤ [x + r (x )]. Then for p = ( 1 2 , 1 2 ), S j ( p ) is undeFned as the proFt maximizing production plan is arbitrarily large. t S j ( p ) is welldeFned (though it may be a bit messy to calculate) as ( x, [x + r (x )]) so that  ( x, [x + r (x )])  = c . 15.2. Let Y j = { (x, y)  for 1000 > x ≥ 0, y ≤ ; for x = 1000,  ∞ < y < ∞ } . 1 1000 − x − 1 1000 Let r = (1100, 0). Then the attainable set in Y j and the attainable set in Y are unbounded. 1 16.1. At p' = (0,1), B i (p') = { (x 1 , x 2 )  x 1 , x 2 ≥ 0, x 1 + x 2 ≤ 10 }. This set is unbounded and admits values of x 1 arbitrarily large. But u(x 1 , x 2 ) is strictly increasing in x 1 so D i (p') is not well defined. = (c, 10), bounded and well defined. D ∼ i ( p ) 1...
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This note was uploaded on 11/30/2011 for the course ECON 311 taught by Professor Zambrano during the Fall '08 term at Cal Poly.
 Fall '08
 ZAMBRANO
 Microeconomics

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