I value of Q-14 257 800 and that A- 35 600. How would the optimal value of Q change if the budget constraint rom 1200 to 1500? N: 3K+ 2L= (S00 one: Increase by 10 680 000 14257800 = K²L Increase by 10 300 000 Increase by 35 600 3. Decrease by 54 000 004
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- Can you please solve 8 e knowing that the awnser to 8 d is found written below. Please also see attached question Awnser to 8d: U = (X1)^(1/2)*(X2)^(1/3) We have budget constraint as, m = P1*X1+P2*X2 Let's set up the Lagrange maximizing function as below. L = U(X1, X2) - λλ(P1X1+P2X2-m) L = (X1)^(1/2)*(X2)^(1/3)- λλ(P1X1+P2X2-m) Finding first order condition, dL/dX1 = (0.5)*(X2)^(1/3)/(X1)^(1/2)-λλP1 dL/dX2 = (1/3)*(X1)^(1/2)/(X2)^(2/3)-λλP2 Equating these equations to zero to get, (0.5)*(X2)^(1/3)/(X1)^(1/2)-λλP1 = 0 (1/3)*(X1)^(1/2)/(X2)^(2/3)-λλP2 = 0 (0.5)*(X2)^(1/3)/(X1)^(1/2)/P1 = (1/3)*(X1)^(1/2)/(X2)^(2/3)/P2 (3/2)*(X2/X1) = P1/P2 X1 = (1.5P2*X2)/P1 dL/dλλ = P1X1+P2X2-m=0 P1X1+P2X2 = m P1*(1.5P2*X2)/P1+P2X2=m 2.5*P2X2=m X2 = 0.4*m/P2 X1 = 0.6*m/P1 Hence, Marshallian demand function for good q and good 2 respectively are X1 = 0.4*m/P1 X2 = 0.6*m/P2Q = f(L) = 15L2 – L3 Price = 10Wage Rate = 270Graphically and mathematically show that the optimal input level is within the stage II of production. Calculate for the firm’s optimal output and maximum profitThe consumer choice is not restricted to the choice of consumptiongoods. In fact, it can apply to all our decisions that involve trade-offs. Suppose Mary has awage per hour of 10 euros. With her earned income she consumes. That isC=wH per day.She also decides how many hours to work of take leisure time each day.H=24-N, whereHis work and N is leisure. Her utility is given by (picture) Solve for the optimal decision of labor/leisure. Plot the budget constraint and the indif-ferent curve. What is the labor supply function?
- a) You are given a utility function described as:U= U(K, L, M) = 10LogK + SLogL. + 2LogMWhere K, L and M are goods consumed. The individual has K100 to spend on the threeitems. Furthermore, you are informed that monthly salary is $500 and the prices of K, Land M are $2, $10 and $4 respectively. Calculate the consumer's optimal bundle.D.b) Provided a demand curve for Beans is as followsO = 4000 - 255PWhere Q is the quantity demanded and P is the price. Find the elasticity at K7, K10 and K15.(a) Dividing MUX and MUY by their respective prices compute the weighted marginal utility or marginal utility of money expenditure and draw up Table 2 showing diminishing returns for the consumption of the 6 units? (b) Briefly state what you can infer on this equation; MUX/PX = MUY/PY as far as equi marginal principle and managerial economics is concerned? C)Given that MUX/PX and MUY/PY are equal to 6 when 5 units of X and 3 units of Y are purchased. By purchasing these combinations of X and Y, calculate the amount the consumer will spend and derive the maximum satisfaction from combination of these units. (d) Applying the above principle illustrate in terms of a figure, and draw marginal utility curves for goods X and Y. You need to use marginal utility and price i.e. Marginal utility per Kwacha spent on good X = MUX/PX, and that of Y = MUY/PY. The MUX/PX curve should be shown in figure (a) while the MUY/PY curve should be shown in Fig (b). Please do not draw negative…1. Suppose Firm A has a budget of P1.5 million pesos in outsourcinginputs, labor and machines, that would lend support in its 1 yearoperation. Suppose further that the cost of labor for 1 year is P150,000and for a machine is P200,000. If it decides to hire 6 laborers, howmany machines would it accept?
- Consider Alexei who makes $1,400 per week and just won a ‘set for life’ lottery ticket whichinvolves a fortnightly payment of $10,000 for 20 years. Currently he works 35 hours per week. Nowdo the following:• Illustrate the effect of the lottery win on Alexei’s budget constraint using a fully labelleddiagram where i) the horizontal axis represents the hours of free time per week, and ii) thevertical axis represents Alexei’s weekly consumption.• Illustrate on the same diagram Alexei’s optimal decisions before and after the lottery winalong with his indifference curves.Given: C = 100 + 0.75Yd (where Yd = Y-T)I = 120-600iG = 200T = 20 + 0.2YMs/P = 300Md/P = 50+0.5Y-600i obtain equilibrium consumptionConsider a consumer’s constrained optimization problem. max u(n,y)=4n+3y subject to wn+y=24w+Yo Where N = non-work (leisure) hours, Y = total income (consumption), w = the wage rate and H = hours worked with N + H = 24. a. Assuming an interior solution, use the first order conditions from the Lagrangean to solve for the utility maximizing choice of N* and Y*. How many hours, H*, does this consumer work? (Any of these answers might be functions of w.) when w=1 and Yo=50. No hand written solution and no image
- Suppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables are given by M = 500, Px = 5, and Py = 4. Price of y changes to Py = 2. What is the income effect ony?O A.-14.53O B. +14.53O C. +24.21O D. +25.79O E. None of the above Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.Malita has K150 of disposable income to spend each week and cannot borrow money. She buys Milk balls and a composite good. Suppose that Milk balls cost K2.50 per bag and the composite good costs K1 per unit. a) Sketch Malita’s budget constraint. b) What is the opportunity cost, in terms of bags of Milk balls, of an additional unit of the composite good? c) Suppose that in an inflationary period the cost of the composite good increases to K1.50 per unit, but the cost of Milk balls remains the same. Sketch the new budget constraint. d) What is the opportunity cost of van additional unit of the composite good? e) Suppose now Malita demands a pay raise to fight the inflation. Her boss submits and raises her salary so that her disposable income is now K225 per week. Sketch the new budget constraint. Is Malita better off? f) What is the opportunity cost of an additional unit of the composite good? Please ANSWER e and f. The K before a number is just the currency abbreviation.ThanksPenelope utility function is U (a, b) = a+ 10b−b2, where a is the amount of applesconsumed and b is the amount of bananas consumed. He has $100 income. Theprice of apple is $0.5 per lb. Price of banana’s though increases with its purchase.Specifically, buying, b pounds of bananas will cost Pedro b2.a. What is Penelope optimal consumption?b. Now, he suddenly acquires an extra $100 income. How this will changehis allocation?