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    Caristo Mumba
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    This document contains tutorial questions from the Department of Economics at the University of Zambia. It includes questions about [1] drawing a total utility schedule for a consumer with a utility function of U=2X^2 who faces a price of 16 units for a good, [2] finding the optimal values of x and y that maximize total profit for a firm with profit functions of π=50-2x+xy-3y+95 subject to a constraint of x+y=25, and [3] explaining the importance of lambda in solving optimization problems. It also asks students to [5] define utility and explain its relevance to economic analysis, and [6] explain the basic assumptions of individual preferences

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    This document contains tutorial questions from the Department of Economics at the University of Zambia. It includes questions about [1] drawing a total utility schedule for a consumer with a utility function of U=2X^2 who faces a price of 16 units for a good, [2] finding the optimal values of x and y that maximize total profit for a firm with profit functions of π=50-2x+xy-3y+95 subject to a constraint of x+y=25, and [3] explaining the importance of lambda in solving optimization problems. It also asks students to [5] define utility and explain its relevance to economic analysis, and [6] explain the basic assumptions of individual preferences

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    99 views1 page

    Ecn 2115 Tutorial Sheet 1 PDF

    Uploaded by

    Caristo Mumba
    This document contains tutorial questions from the Department of Economics at the University of Zambia. It includes questions about [1] drawing a total utility schedule for a consumer with a utility function of U=2X^2 who faces a price of 16 units for a good, [2] finding the optimal values of x and y that maximize total profit for a firm with profit functions of π=50-2x+xy-3y+95 subject to a constraint of x+y=25, and [3] explaining the importance of lambda in solving optimization problems. It also asks students to [5] define utility and explain its relevance to economic analysis, and [6] explain the basic assumptions of individual preferences

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 1

    University of Zambia

    Department of Economics
    EC 2115........TUTORIAL SHEET 2018

    1. Given a consumer who has a utility function described as U=2X2 where U is


    utility and X is the good consumed. The consumer buys positive amounts of the
    good whose market price is K16 per unit. Draw a schedule showing the
    consumer’s total utility for values of X=1 to 6. How much of good X does the
    consumer buy and consume?

    2. ` Suppose a manager of a firm which is producing two products x and y, seeks


    maximise total profits functions which is given by the following equation

    = 50 − 2 -xy-3 + 95

    Subject to x+ y =25

    Find the optimal values of x and y that maximise the profit of the firm.

    3. What is the importance of lamda in solving optimisation problems?

    5. Define the term utility and explain the relevance of utility to economic analysis

    6. what are the basis assumptions of individual preferences.

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