ajaz_204_2013_2014_HW_1

Here are some examples 6 university

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Unformatted text preview: () ⏟ () () 6 University of Toronto, Department of Economics, ECO 204, 2013 - 20143 Here are some counter-examples: ⏟ () ⏟ ⏟ () ⏟ () () Question 3 Graph the function defined on . Does the function “look” strictly concave (decelerating and doesn’t have flat portions)? If so, is it true that strict concavity implies that ( ) for all values of (in particular )? The function certainly “looks” strictly concave – the graph is decelerating and there aren’t any horizontal portions. Now: () () Note that () This shows that a function can be strictly concave even if at some point. Question 4 Convert each of the following minimization problems into a maximization problem: (a) (b) (c) Question 5 Consider a perfectly competitive firm (i.e. price taker) with the cost function total fixed cost and is a constant. where is the 7 University of Toronto, Department of Economics, ECO 204, 2013 - 20143 (a) Write down the profit equation in terms of (b) Denote profits by function. (the price), and the...
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