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Q1. Answer the following questions: Q1.1 (10 points) Bob consumes two goods, beer and beer nuts. Last year, the price of beer was 2 while
Q1. Answer the following questions: Q1.1 (10 points) Bob consumes two goods, beer and beer nuts. Last year, the price of beer was 2 while the price of beer nuts was 4, and he bought 2 units of beer and 9 units of beer nuts. This year, the price of beer is 4 and the price of beer nuts is 2, and he buys 3 units of beer and 8 units of beer nuts. Are Bob's behaviors consistent with the weak axiom of revealed preference? Explain briefly. Q1.2 (10 points) A firm's production function in a market is given by f ($1, Z2) = 2122. Find out this firm's cost function and explain briefly whether or not firms with this kind of production function will be consistent with competitive markets
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