March - 2023

Chapter 2 Henderson and Quandt Microeconomics, Questions 2.9-2.12_ Solutions

2-9 Prove that Q₁ and Q₂ cannot both be inferior goods. We can prove that Q₁ and Q₂ cannot both be inferior goods by contradiction....

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Chapter 2 Henderson and Quandt Microeconomics, Questions 2.5-2.8_ Solutions

2-5 Show that the utility functions U = Aand W = are monotonic transformations of each other where A, α, and β are positive. To show that...

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Chapter 2 Henderson and Quandt Microeconomics, Questions 2.1-2.4_ Solutions

2-1 Determine whether the following utility functions are regular strictly quasi-concave for the domain_ q₁>0, q:>0: U = q_1q_2; U =...

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Chapter 6 Henderson and Quandt Microeconomics, Questions 6.12-6.13_ Solutions

6-12 Consider the following markets which are characterized by lagged supply response: (a) = 40-10p,; = 2+9 (b) = 30-5p₁; = 20 -...

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Chapter 6 Henderson and Quandt Microeconomics, Questions 6.9-6.11_ Solutions

6-9 A consumer allocates a fixed amount of time to labor and leisure. He derives satisfaction from the time he retains as leisure, L, and...

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Chapter 6 Henderson and Quandt Microeconomics, Questions 6.4-6.8_ Solutions

6-4 The long-run cost function for each firm that supplies Q is C= -4 +8q. Firms will enter the industry if profits are positive and...

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Chapter 6 Henderson and Quandt Microeconomics, Questions 6.1-6.3_ Solutions

6-1 Two hundred consumers derive utility from the consumption of two goods. Each has the utility function U = 10 +5 +. Each has a fixed...

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Chapter 5 Henderson and Quandt Microeconomics, Questions 5.4-5.8_ Solutions

5-4 Use Shephard's lemma to find the production function that corresponds to the cost function C=(+2 √ +)q, and demonstrate that it is...

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Chapter 5 Henderson and Quandt Microeconomics, Questions 5.1-5.3_ Solutions

5-1 Each of the following production functions is homogeneous of degree one. In each case, derive the marginal products for X, and X₂ and...

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Chapter 4 Henderson and Quandt Microeconomics, Questions 4.4-4.7_ Solutions

4-4 Assume that an entrepreneur's short-run total cost function is C=q³-10q²+17q+66. Determine the output level at which he maximizes...

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