34
UTILITY
(Ch. 4)
Chapter 4
NAME
Utility
Introduction. In the previous chapter, you learned about preferences
and indierence curves. Here we study another way of describing preferences, the utility function. A utility function that represents a persons p

242
PROFIT MAXIMIZATION
(Ch. 19)
Chapter 19
NAME
in each period lies below the isoprot lines of the other periods. 19.1 (0) The short-run production function of a competitive rm is given by f (L) = 6L2/3 , where L is the amount of labor it uses. (For thos

98
SLUTSKY EQUATION
(Ch. 8)
Chapter 8
NAME
Slutsky Equation
Introduction. It is useful to think of a price change as having two distinct eects, a substitution eect and an income eect. The substitution eect of a price change is the change that would have h

230
TECHNOLOGY
(Ch. 18)
Chapter 18
NAME
Example: Let the production function be f (x1 , x2 ) = mincfw_x1 , x2 . Then
f (tx1 , tx2 ) = mincfw_tx1 , tx2 = min tcfw_x1 , x2 = t mincfw_x1 , x2 = tf (x1 , x2 ). Therefore when all inputs are multiplied by t,

NAME
65
66
CHOICE
(Ch. 5)
Other goods 8 a
6
c
4
2
b
0
1
2
3
4 Eggs
68
DEMAND
(Ch. 6)
Chapter 6
NAME
Demand
Introduction. In the previous chapter, you found the commodity bundle
that a consumer with a given utility function would choose in a specic price-i

50
CHOICE
(Ch. 5)
Chapter 5
NAME
Choice
Introduction. You have studied budgets, and you have studied preferences. Now is the time to put these two ideas together and do something with them. In this chapter you study the commodity bundle chosen by a utilit

18
PREFERENCES
(Ch. 3)
Chapter 3
NAME
Preferences
Introduction. In the previous section you learned how to use graphs to
show the set of commodity bundles that a consumer can aord. In this section, you learn to put information about the consumers preferen

6
BUDGET CONSTRAINT
(Ch. 2)
Chapter 2
NAME
Budget Constraint
Introduction. These workouts are designed to build your skills in describing economic situations with graphs and algebra. Budget sets are a good place to start, because both the algebra and the

254
COST MINIMIZATION
(Ch. 20)
Chapter 20
NAME
Cost Minimization
Introduction. In the chapter on consumer choice, you studied a consumer who tries to maximize his utility subject to the constraint that he has a xed amount of money to spend. In this chapte

Faculty of Business Management & Globalization
BECON 1201 MICROECONOMICS
Department
Course Name
: Faculty of Business Management & Globalization
: B Bus (Hons) in Business Administration, B Bus (Hons)
In Entrepreneurship, B Bus (Hons) in Marketing, B Bus