Quiz 2-1

Quiz 2-1 - (iii)Find relative shares of K and L, if each...

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Quiz 2-1 Total Marks 20 Lahore School of Economics BSC –II Section A Mathematical Economics II Spring 2012 Name:_____________________ Section:_______________ 1. (a) A two-product firm faces the following demand and cost functions: [6] Find the output levels that satisfy the first-order condition for the maximum profit. Check also the second-order sufficient condition. (b) Given the production function , show that [4] (i) Check whether Q is homogeneous function or not. (ii) Under what condition Euler’s theorem holds?
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Unformatted text preview: (iii)Find relative shares of K and L, if each input is assumed to be paid by the amount of its marginal product. 2. Check the Cob-Douglas function [5] is quasiconcave, quasiconvex, strictly quasiconcave, strictly quasiconvex or neither. (b) Given the function and the constraint: [5] (i) Use the Lagrange-multiplier method to find the stationary values of z . (ii) Determine whether the stationary value of z is a maximum or minimum....
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This note was uploaded on 03/23/2012 for the course ECON 201 taught by Professor Cowell during the Spring '10 term at LSE.

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