Bundle: Microeconomic Theory: Basic Principles and Extensions, 12th + MindTap Economics, 1 term (6 months) Printed Access Card
12th Edition
ISBN: 9781337198202
Author: NICHOLSON, Walter, Snyder, Christopher M.
Publisher: Cengage Learning
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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 to thefunctionU (c, b) = 20c - c2 +18b- 3b2.How many cigars and glasses of brandy does he consume during an evening? (Cost is no objectto J. P.)b. Lately, however, J. P. has been advised by his doctors that he should limit the sum of glasses ofbrandy and cigars consumed to 5. How many glasses of brandy and cigars will he consumeunder 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.
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Bundle: Microeconomic Theory: Basic Principles and Extensions, 12th + MindTap Economics, 1 term (6 months) Printed Access Card
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