Microeconomics UE Past Papers Questions.

Succinctly account for the assertions and critiques of the cardinal utility.

Answer / Solution

UNSOLVED

Consider the following utility function : U(X,Y)=X^0.4 Y^0.6

1. Derive the demand equations for commodities  X and Y
2. If the current income available to spend on the two commodities is TZS 16 and the price of goods X and Y are TZS 2 and TZS 8 respectively, calculate the Lagrangian multiplier and interpret its meaning with respect to the consumer`s current situation.

Answer / Solution

UNSOLVED

What is output elasticity?

Answer / Solution

UNSOLVED

Show that for a profit maximizing firm, the optimum (first order) conditions for constrained output maximization are the same as those for cost minimization.

Answer / Solution

UNSOLVED

1. A firm`s total cost function is given by the equation TC=4000+5Q+10Q²  . Write an expression for each of the following cost concepts.

1. total fixed cost
2. average fixed cost
3. total variable cost
4. average variable cost
5. average total cost
6. marginal cost

2. From (a) above , determine the quantity that maximizes average total cost and demonstrate that the predicted relationship between marginal cost and average cost holds.

Answer / Solution

UNSOLVED