Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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Chapter 2, Problem 2.4P
To determine
To know:Relationship between two solutions.
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On a given evening, J. P. enjoys the consumption of cigars (c) and brandy (b) according tothe functionU(c, b) = 20c− c²+ 18b − 3b²a. How many cigars and glasses of brandy does he consume during an evening? (Cost isno object to J. P.)b. Lately, however, J. P. has been advised by his doctors that he should limit the sum ofglasses of brandy and cigars consumed to 5. How many glasses of brandy and cigarswill he consume under these circumstances?
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The function
f(x, y) = (x + y) – a² – y? – 6xy
has stationary points at some of the following points, (x, y). In each case identify whether the point is
stationary, and if so find out if it is a maximum, minimum or saddle point.
1. The point (0,0) is
2. The point (1/2, 1/2) is
3. The point (1/2, -1/2) is
4. The point (-1/2,1/2) is
5. The point (-1/2,–1/2) is
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The vending machine in Katherine's office building offers cans of pop and candies.
Katherine's utility function is U = 3PC, where P is the amount of pop consumed per
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week and C is the amount of candy consumed per week. Pop costs $1 and candy
costs $0.5 per bag. If Katherine has $10 to spend, she will consume
A bags of candy.
Chapter 2 Solutions
Microeconomic Theory
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