Marie’s Utility function is U(x, y) = min{3x + 2y,2x + 5y}, where x is the number
of units of sugar she consumes and y is the number of units of spice she consumes.
She is currently consuming 12 units of sugar and 40 units of spice and she is spending
all of her income.
(1) Draw a graph showing her indifference curve through this point. (10%)
(2) The price of spice is $1. In order for this to be her consumption bundle, what must
the price of sugar be and what must her income be? (10%)
Consider an economy with two agents and two goods. Let the goods be labeled x
and y , and the agents 1 and 2. Agent 1’s initial endownment is given by the vector
(3/4, 1/4). Agent 2’s endownment vector is given by the vector (1/4, 3/4). Thus, there
is a total endownment of 1 unit of x and 1 unit of y . The preference of the two
agents are represented by the utility functions:
U(x, y) = x + 2y
U(x, y) = min{x, y}
(1) Draw the Edgeworth box. Label the endownment point by E. (5%)
(2) Draw the indifference curve for each agent through the endownment point. (5%)
(3) Determine the competitive equilibrium allocation. (5%)
(4) Find the equation for the contract curve. (5%)
A duopoly faces the demand curve D( p) = 30 − 0.5p . Both firms in the industry have
a total cost function given by C(q) = 4q . Suppose that firm 1 is a Stackelberg leader
in choosing its quantity first. Then, what is firm 1’s profit function? (10%)
可觀看題目詳解,並提供模擬測驗!(免費會員無法觀看研究所試題解答)