- An indifference curve is given by X0.4Y0.7 = 100, where X and Y are quantities of goods X and Y consumed, with Y is on the vertical axis and X is on the horizontal axis.
- Find the slope of the indifference curve.
- Does the marginal rate of substitution (MRS) diminish along the indifference curve
when X increases? Prove your answer.
A generalized production function Q=f(K,L) is defined implicitly from the following equation, f(Q, K, L) = QerQ-AKaLb = 0. Find the marginal product of L and K, and the MRTS
3. A demand function for good X is given by X=APxaPyβIγ,
- Given A= and B=.
- Find AB and BA, showing AB ¹
- Show that det(AB) = det(BA) = (detA)*(detB).
- Find A+B and show that det(A+B) ¹ det(A)+det(B).