ECON 212 Quiz: ECON 212quizQuiz3 Section002-Solution-140316
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ECON 212 Full Course Notes
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Econ 212 - microeconomic theory i - winter 2016 - section 2 - quiz 3. With lottery . 4, there is a 0. 90 chance that you receive a payoff of sh and 0. 10 chance that you receive a payoff of . E (la)" p-q) (cz) + \ o rl{rzoo i "-,/b. Vor{t n\ = e(t*z} -, etlr\l = (o. l) (qtto)l - ,. to. Uor(la\ = e{la"} - e{ln = lo-i)f :ciu +1o-r){r0,} e - loz : loo. L a) > t/urrl ls: (5 points) suppose that your utility function is u : /7:m0. Eul,la\ = to. q ) ot ( o ) + [o i \ rtt4oo) Eu{t*\ = (o -r)u{ ro) r- (o fl6tso} (o-r)&orrco l- (o. r)rlffi. For the production function function q:6l2 -. l3, show how much the firm should produce so that (show your procedure: (2. 5 points) average product is maximized frp= ry= il-ll =7 ,# 6-zl:c)
