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Trang has strictly convex indifference curves and is indifferent between the bundles (16, 2) and (2, 4)
a) Use the definition of strict convexity to show that Trang prefers (9, 3) to (2, 4).
b) Can you say whether Trang would prefer (8.9, 2.9), (9.1, 3.1) or (1, 1) to (2, 4)?
q1. markets left alone always tend to equilibrate that is find their way back to the equilibrium point. what is
Whay Tara is leaving her current job, which pays € 56,000 per year, to start a new company that manufactures a line of special pens for personal digital assistants.
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Determine the minimum average cost of the firm with these different order sizes.
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Max has the utility function U(x, y) = x(y + 1). The price of x is $2 and the price of y is $1. Max’s Income is $11. How much x does Max demand? How much y? If his income doubles and prices stay unchanged, will Max’s demand for both goods double?
What order quantity would you advise and how much can they save using your recommendation instead of their one order per year strategy.
In a natural monopoly, the average cost:
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