Reference no: EM131104078
1. Chloe consumes chicken wing (x) and beer (y). Let Px+Py=M be Chloe's budget constraint and her utility function is U(x, y)=5xy.
a. Find the formula of income-consumption curve. (This is nothing new. You have solved this many times before.)
b. Find the demand functions of chicken wing.
c. Draw Chloe's Engel curve for chicken wing from question (c) above.
d. What are the price elasticities of demand for chicken wing? What are the income elasticities of demand for beer?
2. Suppose that the production function of a representative firm in perfect competition is given as X=K^0.25L^0.75 and the budget of this firm is defined as PL+PK=C for arbitrary C.
a. Derive the Long-run expansion path.
b. Suppose that PL (wage) is 1 and PK (rent for capital) is 2. Current the available budget limit is 12 and plant size (fixed level of capital) is Ko=3. Find the demand for labor. Is this cost minimizing level of labor employment?
c. Now suppose that the plant size (level of capital) can be adjustable under same input price & budget condition in question 4-(b). Find the demand for labor.
d. Now drop previous assumption about price of labor, price of capital and budget limit, and just focus on the general case. Find the formula of total cost function, marginal cost function, and average cost function in the long-run. (Hint: TC(X)= PL×L + PK×K. Plug input demand functions into L and K of TC function. Input demand functions are derived by plugging rearranged production function with respect to L or K into the formula of expansion path.)
|
Discuss and evaluate the diverse of prosecutors
: Write a paper in which you discuss and evaluate the diverse of, prosecutors. Discuss how they are both independent and mutually interdependent as well as the benefits and pitfalls of such relationships.
|
|
Differences between trial balance before or after closing
: What differences are there between the trial balance before closing and the trial balance after closing with respect to the following accounts?
|
|
Which of the above is true why
: Explain the human-capital view of education and the signaling view of education.
|
|
Explore thomas paine theory
: IMPORTANT TO READ: Your essay needs to adhere to the following format: 4-5 pgs., 12pt. font, double-spaced with 1in. margins. Citation of reading should follow MLA format. Pick ONE of the following Prompts to write your essay.
|
|
Find the formula of income-consumption curve
: 1. Chloe consumes chicken wing (x) and beer (y). Let Px+Py=M be Chloe's budget constraint and her utility function is U(x, y)=5xy. a. Find the formula of income-consumption curve. (This is nothing new. You have solved this many times before.)
|
|
Prepare a statement of cash flows for odgers inc
: Prepare a statement of cash flows using the indirect method and Compute the following ratios for 2014 - Prepare a statement of cash flows for Odgers Inc. using the direct method.
|
|
Response the given case using irac method
: Jim's attorney claims that this would be unconstitutional because it would not be fair to give somebody such a severe punishment without proving any mensrea on Jim's part. Who is correct? Please use appropriate case law to support your answer.
|
|
Channels of monetary policy transmission
: What are some of the conditions for effectiveness of the bank credit channels of monetary policy transmission? List at least two and explain why they are necessary.
|
|
A neutral effect on the spread value
: Consider a riskless spread with a long position in the August 160 call and a short position in the October 160 call. Determine the appropriate hedge ratio.
|