Microeconomics Analysis 1 Convex-concave costs Consider the 1-input, 1-output technology defined by the cost function f (z) = {(z+1)2— 1, z<1 8-V.Z — 5, z> 1 Fix the price of the input good at w = 1. 1. Find the total cost function. Plot it for quantities up to 10. Find the average cost function. […]
Construct the set of feasible production possibilities graphically. Is the information given so far sufficient to find the Nash bargaining solution?
ASSIGNMENT Answer the question with graph Consider an economy which can produce two commodities with quantities x1 and x2. It is possible to produce (x1, x2) = (3,0). It is also possible to produce (x1, x2) = (0,2). It is also possible to produce all convex combinations of these two allocations. Construct the set of […]