Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

mathematical economics question, please help solve the questions 1. Assume that there are two sources of pollution into a lake. The local water authority can

mathematical economics question, please help solve the questions

image text in transcribed
1. Assume that there are two sources of pollution into a lake. The local water authority can clean up the discharges and reduce pollution levels from these sources but there are, of course, costs involved. The damage effects of each pollution source are measured on a 'pollution scale'.The lower the pollution level the greater the cost of achieving it, as is shown by the cost schedules for cleaning up the two pollution sources: 2, = 479 26',"5 22 = 600 - 3c?s where Z, and Z; are pollution levels and C1 and C; are expenditure levels (in Ms) on reducing pollution. To secure an acceptable level of water purity in the lake the water authority's objective is to reduce the total pollution level to 1.0% by W- How can it do this? 2. A rm faces the production function .J... o = for. l.) = so[o. tit-\"15 + 0. 41.415] '1'. t: can buy the inputs 1: and L at prices per unit of 5 TL and 2 TL respectively. What combination of L and K should be used to maximize output if its input budget is constrained to 150 TL? 3. A consumer's preferences are represented by the utility function, U(X.V)=X"Y'. Budget constraint is M =P,X+P,.Y. Based on this information; a) Derive the Marshallian demand function. b) Calculate zero degree homogeneity for Marshallian demand for X. c) Derive the Hicksian demand function

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

What Every Environmentalist Needs To Know About Capitalism

Authors: Fred Magdoff, John Bellamy Foster

1st Edition

1583672419, 9781583672419

More Books

Students also viewed these Economics questions

Question

3. Use the childs name.

Answered: 1 week ago