solve, Microeconomics

Assignment Help:
1. Suppose that Mr. John has the following Cobb-Douglas utility function
U = 6X^2/3y^1/3
the market price of X and Y commodity are $1 and $2, respectively. If Mr. John''s total income is $90, then answer the following questions:
i. write down the budget line equation
ii. Find the utility maximizing equilibrium quantity of X and Y commodities.
iii. Compute the maximum utility derived from the above equilibrium quantities
iv. Show the equilibrium condition graphically.
v. Compute the income share of commodity X and Y.

Related Discussions:- solve

#title., if the marginal production of labor is rising, is the marginal cos...

if the marginal production of labor is rising, is the marginal cost of production rising or falling? Briefly explain

Atitude of consumers towards risk, find the highest premium find the actuar...

find the highest premium find the actuarialy fair premium

Microenconomics 3, Output 0 Fixed cost $100 Varaible Cost 40 what is the T...

Output 0 Fixed cost $100 Varaible Cost 40 what is the Total cost and Total revenue also the Profit/Loss

Selective in exports, Selective in Exports: There are many industries ...

Selective in Exports: There are many industries where India has an advantage because of relatively lower costs of all forms of manpower whether it is professional or factory l

Keynesian model, in the keynesian model the price is assumed to be what? a....

in the keynesian model the price is assumed to be what? a.exogeneous and remaaining constant b. endogeneous and remaining constant which is correct?

Theory of perfect competition, Perfect competition has the following charac...

Perfect competition has the following characteristics: 1. Large number of firms - There are a large number of firms in the market. Due to this each firm produces a very small fr

Price system, Price System: Demand is the quantity of a commodity that...

Price System: Demand is the quantity of a commodity that consumers are willing and are able to buy at a given price at a given time period when all other things remain the sam

Affect the size of the price elasticity of demand, Problem: i) What mig...

Problem: i) What might be the possible causes of inflation according to economic theory? ii) Taking stable prices and full employment as two macroeconomic objectives of gov

Japanese and American production, What is the graph of the production possi...

What is the graph of the production possibilities frontiers for the American and Japanese economies if American worker can produce 10 tons of grain a year and Japanese worker can p

Production vs cost - resource flow, With current technology, suppose a firm...

With current technology, suppose a firm is producing 400 loaves of bread daily. Assume that the least cost combination of resources in producing those loaves is $180 ( 5 units of

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd