Notes on profit maximization and cost
minimization for a general Cobb-Douglas
production technology
Ritesh Jain
March 3, 2016
1
Introduction
In producer theory profit maximization and cost minimization are two important
exercise which according to me are
ECON 4001.01:Problem Set 2
Due: March 1,2016
February 23, 2016
1
Technology
1.1
Define the following
1. Isoquant
2. Marginal Product of a factor
3. Technical rate of substitution
4. What do you mean by increasing return to scale
1.2
Review Question 1 and
Econ 4002.02
Homework 1
Due Date: Thursday, February 13
1. Consider a production process characterized by the Cobb-Douglas production function
Y = AL K 1 . Let A = 2, = , K = 625 & P = 4.
(a) Derive the equation for the labor demand curve.
AL^(-1)K^(1-)=
Economics 4001 HW4
Due: 08 April 2015
Name:
Heejeong Kim
1. A rm uses labor and machines to produce output using the production function
f (x1 , x2 ) = mincfw_x1 , 3x2 , where x1 is the number of workers and x2 is the number
of machines that it uses in pr
ECON 4001.01:Problem Set 1
Due: January 28,2016
January 22, 2016
1
Budget line
You have an income of $50 to spend on apples and oranges. Apples costs $10
per unit, and oranges 2 costs $5 per unit.
1. Write down your budget equation
2. If you spent all you
EXAM #1 STUDY GUIDE
Note: any material below that we do not cover by 10/2 will not be on the exam.
Each question has one to three asterisks next to it. Asterisks denote the relative
importance of a question. However, just because a question has one asteri
Homework #2
Due: Friday, September 27
Name: Ryan Shary
ECON 4830
Instructions:
Insert your typed answers immediately following the corresponding question.
Handwritten graphical responses are permitted; however, they too should be inserted
immediately foll
ECON 4830
Homework #4
Due: Monday, December 2
Name: Ryan Shary
1.) Humphreys and Mondello (2007), which can be found in the academic papers folder
on Carmen, suggest restricted and unrestricted donations to universities respond
differently to athletic per
Economics 4001.01
Intermediate Microeconomic Theory
Test 2: Part A (75 points plus bonus)
Name:
1. (6 points.) Complete the following table. Write the formulas you used to do
the calculations.
Quantity of
Variable Input
Total Output
0
1
2
3
4
5
6
0
Margin
Econ 4001.01 Intermediate Microeconomics
Mid Term 1
11 February, 2016
Instructions
1. The duration for this exam is 1 hour 10 min.
2. This exam has two sections. In Section 1 there are 20 multiple choice
questions each carrying one point.
3. Section 2 is
Economics 4001.01
Intermediate Microeconomic Theory
Test 3: Part A (75 points plus bonus)
Name:
1. (6 points.) The demand and supply functions for oil on the world market are
given as: QD = 25.64 - 0.06P and QS = 21.74 + 0.07P. Calculate consumer
surplus.
2
Supply
and Demand
Talk is cheap because supply exceeds demand.
Challenge
Quantities and
Prices of
Genetically
Modified Foods
Countries around the globe are debating whether to permit firms to grow or sell
genetically modified (GM) foods, which have thei
Economics 4001.01
Intermediate Microeconomic Theory
Test 1: Part A (75 points plus bonus)
Name:
1. (3 points.) Does the following statement involve positive economic analysis,
normative economic analysis, or both? Explain your answer.
Gasoline rationing (
The Ohio State University
Department of Economics
ECON 4001.01
Intermediate Microeconomics theory
Classes:
Section 10928: TR 2:20-3:40, Smith Lab 1009
Section 10929: TR 3:55-5:15, Smith Lab 1005
Office hours: Wednesday 11-12 or by appointment
Dr. Leila Fa
Economics 4001 HW4 Solution
Due: 08 April 2015
Name:
Heejeong Kim
1. A rm uses labor and machines to produce output using the production function
f (x1 , x2 ) = mincfw_x1 , 3x2 , where x1 is the number of workers and x2 is the number
of machines that it u
Economics 4001 First Quiz Solutions
14 September 2016
Aubhik Khan
1. David has m = $30 to spend on beer (xb ) and chips (xc ). The market price of beer is Pb = $5
dollars per can. The market price of chips is Pc = $2 per bag. There is a t = $1 quantity ta
Economics 4001 Second Quiz Solutions
29 September 2016
Aubhik Khan
1. The price ratio is given by
5
10
= 12 .
(a) Since | PP21 | = 12 < |M RS|, Macbeth will leave the store with more than 2 units of
bread.
This is because he is willing to give up more che
11
Intermolecular
Forces, Liquids,
and Solids
Visualizing Concepts
11.1
The diagram best describes a liquid. In the diagram, the particles are close together,
mostly touching but there is no regular arrangement or order. This rules out a gaseous
sample, w
Economics 4001 HW 1
Due: 23 January 2015
Name:
1. The demand function for apple is D(P ) =
100
,
P
and the supply function is S(P ) = P .
What is the equilibrium price and quantity?
2. A consumer lives on avocados and beans. The price of avocados is $10,
Practice Question 3.Preferences
1. Charlie likes both apples and bananas. He consumes nothing else. The consumption bundle where Charlie consumes xA apples and xB bananas per year
is written as (xA , xB ). Last year, Charlie consumed 20 bushes of apples a
Economics 4001 HW5 Solution
Due: 22 April 2015
Name:
Heejeong Kim
1. Consider a competitive industry with a large number of rms. Suppose that the supply
curve is given by S(p) = 2p and the demand curve is given by D(p) = 20 2p. The
government levies a qua
Economics 4001 HW1 Solution
Due: 23 January 2015
1. The demand function for apple is D(P ) =
100
,
P
and the supply function is S(P ) = P .
What is the equilibrium price and quantity?
Answer. In equilibrium, the excess demand and excess supply do not exis
Economics 4001 HW2 Solution
Due: 11 February 2015
Name:
Heejeong Kim
1. (5pts) Consider the utility function U (x1 , x2 ) = x2 x2 .
1 2
(a) Draw the indierence curve representing U (x1 , x2 ) = 16 with x1 on the horizontal
axis and x2 on the vertical axis
Economics 4001 HW 2
Due: 11 February 2015
Name:
Heejeong Kim
1. (5pts) Consider the utility function U (x1 , x2 ) = x2 x2 .
1 2
(a) Draw the indierence curve representing U (x1 , x2 ) = 16 with x1 on the horizontal
axis and x2 on the vertical axis. Determ
Economics 4001 HW5
Due: 22 April 2015
Name:
Heejeong Kim
1. Consider a competitive industry with a large number of rms. Suppose that the supply
curve is given by S(p) = 2p and the demand curve is given by D(p) = 20 2p. The
government levies a quantity tax
Economics 4001 HW3 Solution
Due: 09 March 2015
Name:
Heejeong Kim
1. Stephen Fry earning an income m, has a Cobb-Douglas utility U (x1 , x2 ) = x1 c x2 d over
2 goods x1 and x2 . The price of good x1 is P1 and x2 is P2 .
(a) Write down Mr.Frys demand func
Economics 4001 HW3
Due: 09 March 2015
Name:
Heejeong Kim
1. Stephen Fry earning an income m, has a Cobb-Douglas utility U (x1 , x2 ) = x1 c x2 d over
2 goods x1 and x2 . The price of good x1 is P1 and x2 is P2 .
(a) Write down Mr.Frys demand function for