TEST BANK FOR Microeconomic Analysis 3rd Edition B
Maastricht University (UM)
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Exam (elaborations) TEST BANK FOR Microeconomic Analysis 3rd Edition B
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Exam (elaborations) TEST BANK FOR Microeconomic Analysis 3rd Edition B
1 False. There are many counterexamples. Consider the technology
generated by a production function f(x) = x2. The production set is
Y = {(y, −x) : y ≤ x2} which is certainly not convex, but the input requirement set is V (y) = {x : x ≥ √y} which is a convex set.
1.2 It doesn’t change.
1.3 1 = a and 2 = b.
1.4 Let y(t) = f(tx). Then
dy
dt = Xn
i=1
∂f(x)
∂xi
xi,
so that
1
y
dy
dt = 1
f(x)
X...
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Exam (elaborations) TEST BANK FOR Microeconomic Analysis 3rd Edition B
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Exam (elaborations) TEST BANK FOR Microeconomic Analysis 3rd Edition B 1 False. There are many counterexamples. Consider the technology generated by a production function f(x) = x2. The production set is Y = {(y, −x) : y ≤ x2} which is certainly not convex, but the input requirement set is V (y) = {x : x ≥ √y} which is a convex set. 1.2 It doesn’t change. 1.3 1 = a and 2 = b. 1.4 Let y(t) = f(tx). Then dy dt = Xn i=1 ∂f(x) ∂xi xi, so that 1 y dy dt = 1 f(x) X...
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