ECO 300 Hunter College Answer Key for Homework 1
2.3 To graph the indifference curves, use U 2 instead of U. U = 10 means U 2 = 100 = C D . Hence, indifference curves are hyperbolas. a.
b. c. d.
See graph. D=10, U = 10 0 = 0 If, say, spent half of income
Eco300 HW4AnswerKey
16.6 a. b. Setting MB = MC yields 100 R = 20 + R or R = 40. The fee should be set so that farmers choose R = 40. So, Fee = MC = 20 + R = 20 + 40 = 60. A fee of 60 for each percent not reduced would prompt farmers to choose R = 40. It i
Eco 300 HW 3 Answer Key
11.6 First prove the hint:
In the graph Qmax is the quantity demanded when P = 0. Since MR = 0 at 1/2Qmax (there e = 1), it is clear that MR bisects the distance from the P axis to the demand curve. So, if Q* represents quantity de
Homework 2 Answer Key
6.9 a. q = 100 KL = 1,000 so KL = 10, or, K L = 100.
b c
K = 10, L = 10 APL = q/L = 1,000/10 = 100 boxes per hour per worker. If q = 200
KL = 1000 KL = 5, or, KL = 25.
Isoquant shifts to q'0. Now, if K = 10 L = 2.5 APL = q/L = 1,000/