ECON 211 PROBLEM SET # 6: PERFECT COMPETITION
A perfectly competitive rm is producing at an output level where P > AC > MC.
Use traditionally shaped cost curves to illustrate this position.
ls the rm maximizing prot?
is it making
.935 >86 2 x5 0:3 mm:
.3 83:0 853$va cfw_a Cox/e; "'7 E' J SuLmn'hhek 4142c; Ha EH
3km aech , Ema? El - C bundle mathematically.
his MUM = (1/4) (C/M) and his m:*33?-1 , L 1, - ' - U(X.Y)=(X+2)(Y+1), where X
O is her consumption: of good X and Y is her c
Econ 21! - PROBLEM SET 38 LABOR-LEISURE CHOICE
1. Skippy has a trust fund that pays him $1,000/month, which he can supplement by
working and earning wages of $10/hr. Skippys preferences over goods (AOG or V)
and leisure (L) are captured by the Cobb-Dou