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That's all of the question given...not sure what else is needed to complete it I. Below is the information for firm Carrot Brothers: Q: 0.25'K'l.
That's all of the question given...not sure what else is needed to complete it
I. Below is the information for firm Carrot Brothers: Q: 0.25'K'l. C = 0.15 1- 0.15\": + DJD'I. What is the production frontier of this rm USES. DRS, or IRS)? [0.4 point: Setting the capital fixed at 2 iii = 2], what is the MPL? [0.4 point} Setting the labor fined at 2 [L = 21, what is the MPK? {0.4 point] What is marginal cost of capital of the firm? [0.4 point] What is marginal cost of labor of the firm? {0.4 point] Calculate MC. ATE, AVC, and AFC for the rm if L: 3, and K=2, K=3 8. lt=4. {2 points! If this firm can sell her products for 2 dollars IP = 25], calculate the prot under following conditions: K = I. = 3; K: 3 8: L = 4: If = I. =4. What is the best scenario for the firm to produce among the above choices? Show your work. {2 points) 2. Answer the belowI questions briey. Use graphs to support your claim if it is necessary. b. What is the Engel curve? Illustrate it using indifference curves (0.5 point] Define Normal. Inferior, and Giffen goods; come up with an example for each of them. What ls the difference between an Inferior good and a Giffen good? (2.25 points] What is the difference between the income effect and the substitution effect? (0.5 point) a consumer buys 25 of good I and 10 of good r with a hundred dollars fher preference is as follow: U=Minix.2.5'fl]. The prices for goods if and 'f are 25 and 55, respectively. If the price for good it decreases to 1.255. how many of ill and r will she boy. alternatively {0.5 pointl. Using the information in part d. illustrate the substitution and income effects when the price for good if changes. Explain (and illustratel what types of goods it and 'r are (while illustrating. do not violate the properties of the indifference curvesfconsumers' behavior]. (1.?5 pointslStep by Step Solution
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