Question: Please answer the following question with full explanations: [10] Robinson Crusoe can produce two goods, X and Y, using the following production technologies: X =

Please answer the following question with full explanations:

[10] Robinson Crusoe can produce two goods, X and Y, using the following production technologies: X = 7 Lx and Y = 3Ly . His preferences over the two goods can be expressed by his utility function U(X, Y) = XYZ and he is only willing to work a total of 6 hours in a day. a. [4] Derive the equation of his production possibilities frontier (express the quantity of good Y as a function of good X). b. [4] Solve for his utility maximizing consumption bundle. c. [2] What is the implicit price ratio that he faces? (Hint: Find the price ratio that is equal to his MRS)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Consider the reaction Ak1Dk2U Pure A is fed to a 1.0-dm 3 CSTR where it reacts to form a desired product (D), which can then react further to produce an undesired product (U); both reactions are...

[10] Robinson Crusoe can produce two goods, X and Y, using the following production technologies: X = 7 LX and Y = 3L, . His preferences over the two goods can be expressed by his utility function...

I dont know how to solve for part b and c of this question. any help with either b or c would be greatly appreciated. [10] Robinson Crusoe can produce two goods, X and Y, using the following...

3. [10] Robinson Crusoe can produce two goods, X and Y, using the following production technologies: = 7 and = 3 . His preferences over the two goods can be expressed by his utility function (, ) = 2...

Please answer the following question: Can the company handle issues with integrating and managing two new factories, one of which is in different city? Note: maybe there is duplicates in the article...

,solve the following Consider a twoperiod model of a small open economy with a single good each period and no investment. Let preferences ofthe representative household be described by the utility...

Question 2 (50 marks): The following graph is found in most economics texts and it illustrates how an economy can get outside its PPF through free trade. Solving this problem is a straight-forward...

Contact me by email: ( ..t with the format of gmail for these 3 assignments. I want your work is 80/100. It must be correct answers. I used to work with 1 tutor. Bad quality with a low grade. Unit:...

Cl e a r l y an s w er t h e f o ll o w in g q u es t i o n s . EXERCISE: WAGESIMA COMPENSATION ADMINISTRATION EXERCISE I. Objectives: To familiarize students with some of the problems involved in...

What is the rationale for the harmonization of international accounting standards?

What function does the ICP torch serve in mass spectrometry?

Which of the following is not true about ESG investing? Group of answer choices ESG inventing and sustainable investing are synonymous there is are industry - wide standards for ESG rating across...

The following transactions for Salem Tire, Co., occurred during June: Jun 4 Purchased $5,000 of merchandise on account from Peters Tire. Terms, 2/15, n/45, FOB shipping point. Peters Tire prepaid the...

Barbara donates a painting that cost $5,000 3 years ago to a university for display in the presidents office. The fair market value of the painting on the date of the gift is $7,000. If Barbara had...

Pete qualifies for a home office deduction. The amount of space devoted to business use is 300 square feet of the total 1,200 square feet in his apartment. Petes total rent for the year is $9,600,...

Rebecca and Walter Bunge have been married for 5 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Rebecca is a homemaker and Walt is a high school teacher. Rebecca's Social...

On January 1, Narnevik Corporation formed a subsidiary in a foreign country. On April 1, the subsidiary purchased inventory on account at a cost of 250,000 local currency units (LCU). One-fifth of...

When the situation is stressed or critical, how much should a manager change in the manager's usual leadership approach to exercise situational leadership

10. Find a news article in a daily newspaper, and answer the following questions: (a) Does the information in the article support your views and attitudes or does it conflict with them? (b) Does the...

2. Give an example where information that is emotionally interesting, specific and close in time and space, can be used to capture someones interest.

7. How can an interpreter influence the utterer (sender)?