Exam 31: A: Production

Al and Bill are the only workers in a small factory that makes geegaws and doodads. Al can make 5 geegaws per hour or 10 doodads per hour. Bill can make 4 geegaws per hour or 24 doodads per hour. Assuming that neither of them finds one task more odious than the other,

Suppose that in Problem 1, Tip can write 4 pages of term papers or solve 8 workbook problems in an hour, while Spot can write 5 pages of term papers or solve 15 workbook problems in an hour. If they each decide to work a total of 5 hours and to share their output, then if they produce as many pages of term paper as possible given that they produce 16 workbook problems,

(See Problem 2.) Robinson Crusoe has exactly 8 hours per day to spend gathering coconuts or catching fish. He can catch 4 fish per hour or he can pick 8 coconuts per hour. His utility function is U(F, C) = FC, where F is his consumption of fish and C is his consumption of coconuts. If he allocates his time in the best possible way between catching fish and picking coconuts, his consumption will be the same as it would be if he could buy fish and coconuts in a competitive market where the price of coconuts is $1, his income is

On a certain island there are only two goods, wheat and milk. The only scarce resource is land. There are 1,000 acres of land. An acre of land will produce either 13 units of milk or 33 units of wheat. Some citizens have lots of land; some have just a little bit. The citizens of the island all have utility functions of the form U(M, W) = MW. At every Pareto optimal allocation,

On a certain island there are only two goods, wheat and milk. The only scarce resource is land. There are 1,000 acres of land. An acre of land will produce either 10 units of milk or 16 units of wheat. Some citizens have lots of land; some have just a little bit. The citizens of the island all have utility functions of the form U(M, W) = MW. At every Pareto optimal allocation,

(See Problem 5.) Every consumer has a red-money income and a blue-money income and each commodity has a red price and a blue price. You can buy a good by paying for it either with blue money at the blue price or with red money at the red price. Harold has 40 units of red money and 35 units of blue money to spend. The red price of ambrosia is 4 and the blue price of ambrosia is 5. The red price of bubble gum is 1 and the blue price of bubble gum is 1. If ambrosia is on the horizontal axis, and bubble gum on the vertical axis, then Harold's budget set is bounded by

Al and Bill are the only workers in a small factory that makes geegaws and doodads. Al can make 5 geegaws per hour or 20 doodads per hour. Bill can make 3 geegaws per hour or 6 doodads per hour. Assuming that neither of them finds one task more odious than the other,

On a certain island there are only two goods, wheat and milk. The only scarce resource is land. There are 1,000 acres of land. An acre of land will produce either 7 units of milk or 37 units of wheat. Some citizens have lots of land; some have just a little bit. The citizens of the island all have utility functions of the form U(M, W) = MW. At every Pareto optimal allocation,

(See Problem 2.) Robinson Crusoe has exactly 8 hours per day to spend gathering coconuts or catching fish. He can catch 2 fish per hour or he can pick 8 coconuts per hour. His utility function is U(F, C) = FC, where F is his consumption of fish and C is his consumption of coconuts. If he allocates his time in the best possible way between catching fish and picking coconuts, his consumption will be the same as it would be if he could buy fish and coconuts in a competitive market where the price of coconuts is $1, his income is

On a certain island there are only two goods, wheat and milk. The only scarce resource is land. There are 1,000 acres of land. An acre of land will produce either 16 units of milk or 31 units of wheat. Some citizens have lots of land; some have just a little bit. The citizens of the island all have utility functions of the form U(M, W) = MW. At every Pareto optimal allocation,

Suppose that in Problem 1, Tip can write 5 pages of term papers or solve 10 workbook problems in an hour, while Spot can write 2 pages of term papers or solve 2 workbook problems in an hour. If they each decide to work a total of 6 hours and to share their output, then if they produce as many pages of term paper as possible given that they produce 25 workbook problems,

On a certain island there are only two goods, wheat and milk. The only scarce resource is land. There are 1,000 acres of land. An acre of land will produce either 3 units of milk or 7 units of wheat. Some citizens have lots of land; some have just a little bit. The citizens of the island all have utility functions of the form U(M, W) = MW. At every Pareto optimal allocation,

Al and Bill are the only workers in a small factory that makes geegaws and doodads. Al can make 6 geegaws per hour or 18 doodads per hour. Bill can make 3 geegaws per hour or 12 doodads per hour. Assuming that neither of them finds one task more odious than the other,

(See Problem 5.) Every consumer has a red-money income and a blue-money income and each commodity has a red price and a blue price. You can buy a good by paying for it either with blue money at the blue price or with red money at the red price. Harold has 18 units of red money and 36 units of blue money to spend. The red price of ambrosia is 2 and the blue price of ambrosia is 6. The red price of bubble gum is 1 and the blue price of bubble gum is 2. If ambrosia is on the horizontal axis, and bubble gum on the vertical axis, then Harold's budget set is bounded by

(See Problem 5.) Every consumer has a red-money income and a blue-money income and each commodity has a red price and a blue price. You can buy a good by paying for it either with blue money at the blue price or with red money at the red price. Harold has 12 units of red money and 10 units of blue money to spend. The red price of ambrosia is 1 and the blue price of ambrosia is 2. The red price of bubble gum is 1 and the blue price of bubble gum is 1. If ambrosia is on the horizontal axis, and bubble gum on the vertical axis, then Harold's budget set is bounded by

Al and Bill are the only workers in a small factory that makes geegaws and doodads. Al can make 7 geegaws per hour or 21 doodads per hour. Bill can make 4 geegaws per hour or 8 doodads per hour. Assuming that neither of them finds one task more odious than the other,

Al and Bill are the only workers in a small factory that makes geegaws and doodads. Al can make 7 geegaws per hour or 14 doodads per hour. Bill can make 4 geegaws per hour or 24 doodads per hour. Assuming that neither of them finds one task more odious than the other,

(See Problem 2.) Robinson Crusoe has exactly 12 hours per day to spend gathering coconuts or catching fish. He can catch 2 fish per hour or he can pick 4 coconuts per hour. His utility function is U(F, C) = FC, where F is his consumption of fish and C is his consumption of coconuts. If he allocates his time in the best possible way between catching fish and picking coconuts, his consumption will be the same as it would be if he could buy fish and coconuts in a competitive market where the price of coconuts is $1, his income is

(See Problem 5.) Every consumer has a red-money income and a blue-money income and each commodity has a red price and a blue price. You can buy a good by paying for it either with blue money at the blue price or with red money at the red price. Harold has 16 units of red money and 42 units of blue money to spend. The red price of ambrosia is 2 and the blue price of ambrosia is 6. The red price of bubble gum is 1 and the blue price of bubble gum is 2. If ambrosia is on the horizontal axis, and bubble gum on the vertical axis, then Harold's budget set is bounded by

Suppose that in Problem 1, Tip can write 3 pages of term papers or solve 12 workbook problems in an hour, while Spot can write 4 pages of term papers or solve 12 workbook problems in an hour. If they each decide to work a total of 7 hours and to share their output, then if they produce as many pages of term paper as possible given that they produce 18 workbook problems,