Exam 31: A: Production

Suppose that in Problem 1, Tip can write 3 pages of term papers or solve 6 workbook problems in an hour, while Spot can write 3 pages of term papers or solve 3 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 15 workbook problems,

(See Problem 2.) Robinson Crusoe has exactly 14 hours per day to spend gathering coconuts or catching fish. He can catch 5 fish per hour or he can pick 20 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 27 units of red money and 40 units of blue money to spend. The red price of ambrosia is 3 and the blue price of ambrosia is 8. 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 4 pages of term papers or solve 4 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 6 hours and to share their output, then if they produce as many pages of term paper as possible given that they produce 20 workbook problems,

(See Problem 2.) Robinson Crusoe has exactly 12 hours per day to spend gathering coconuts or catching fish. He can catch 3 fish per hour or he can pick 12 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