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4 views

Mi ass

I need the answer

Uploaded by

abinetbishaw20
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Micro-economics (Group Assignment Max 20%)

Show all necessary steps.

1. Given the utility function 𝑈 (𝑋, 𝑌) = 𝑋𝑌 + 2𝑌.The prices of the two


commodities X and Y are 2 birr and 4 birrs respectively. A consumer has a total
income of 76 birr to be spent on the two goods. Find utility maximizing quantities
of good X and Y respectively.
2. Consider a consumer with a utility function U (x, y) =X 2 + Y2, the consumer
intends to spend birr 80 on the two goods and price of good X and price of good Y
are birr 2 and birr 4, respectively
A) Find the maximum utility that consumer obtains from consuming the two
goods?
B) Calculate MRSxy at equilibrium, and interpret your result To solve this
problem, we will follow a series of steps to analyze the consumer's utility
function, budget constraint, and the resulting optimal consumption of goods X

and Y.

3. If TU = 10X + 24Y – 0.5 X 2 – 0.5 Y2, the prices of the two goods are 2 and 6, and

we have $44, how much should you consume of each good?

4. Assume a production function is given by the relationship Q=98L-3L 2 where L is


labor input. Assume also the price of output is Birr 20 and wage rate is Birr 40 per
day. How many workers should the firm hire per day?

5. If demand is given as
Q d =a−bP and supply is given asQ s=c+ dP , find
equilibrium price and quantity?
0.4
6. Suppose a consumer’s utility function is given asU =20 X Y 0 . 6 and we are
required to find MRSX, Y.

Note; all student must be participate!!!


Deadline of your Assignment 30/03/2017 E.C

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