Posted by **Christine** on Friday, March 23, 2007 at 7:14am.

Briefly explain the following:

(a)Economic cost and accounting cost.

(b)Free market economy and mixed economy.

(c)Marginal utility theory and indifference curves analysis.

Please note that

**we don't do students' homework** for them.

Once YOU have come up with a response to YOUR questions, please re-post and let us know what you think. Then someone here will be happy to critique your work.

=)

3. please Answer the following questions about Lagrange multipliers and optimal

choice

(a) Let the utility function for good x and y be y + ln (x) (natural loga-

rithm). Write out the Lagrangian function and …rst order conditions.

Find the demand function. Find the income and substitution e¤ects

(in derivative form) of an increase in the price of good x, and y.

(b) Solve for the Cobb Douglas demand functions for utility function

u (x; y) = xy (in this case let + > 1). Also suppose that the

consumer has an endowment of x0 units of good x and y0 units of

good y (so the consumer maximizes utility subject to the constraint

that the value of chosen consumption is less than or equal to px0+qy0 .

Find the income and substitution e¤ects in derivative form.

(c) For utility function y +bx …nd the demand function when p < b and

q = 1. Can you …nd the Lagrangian multipliers for this case?

I have alot of question in micro, if you can help me answer, so I will pay!!

Thank´s

## Answer This Question

## Related Questions

- economics - Briefly describe the main attributes of the following economic ...
- economics - Briefly describe the main attributes of the following economic ...
- Social studies - Could you please check these other sets of terms. Here are the ...
- Economics - The market for fertilizer is perfectly competitive. Firms in the ...
- Indifference Curves - For each example below, draw a set of three indifference ...
- Economics - Why would a country choose to have a mixed economy? I know a mixed ...
- Microeconomics - I need help with question, we havent covered this topic yet and...
- economics - Explain how resources are allocated in a market economy. what should...
- economics - For the total variable cost (TVC), draw a positive total fixed cost...
- economics - 6)Assume the graph below represents the market demand for a patented...

More Related Questions