1. provide a careful proof:(a) Prove that a firm’s cost function, c(w,y), is concave in w.(b) Recall...

Question

1. provide a careful proof:(a) Prove that a firm’s cost function, c(w,y), is concave in w.(b) Recall the lexicographic preference ordering on : for any iff either (i) or (ii) and . Prove that the lexicographic ordering is complete and transitive.
	
Document Preview: 1. provide a careful proof:(a) Prove that a firm’s cost function, c(w,y), is concave in w.(b) Recall the lexicographic preference ordering on X?R+2: for any x,y?X,x?y iff either (i) x1>y1or (ii) x1=y1 and x2=y2.  Prove that the lexicographic ordering is complete and transitive.(c) Consider an n-good exchange economy?i,eii?? where ? = {1, …, I}.  Assume that each ?i satisfies local non-satiation and can be represented by a utility function ui.  Prove that any Walrasian equilibrium allocation (WEA) of this economy is Pareto efficient.

Robert · Accepted Answer

New Doc 2017-04-26
Scanned by CamScanner
Scanned by CamScanner
Scanned by CamScanner
Scanned by CamScanner

1. provide a careful proof: (a) Prove that a firm’s cost function, c ( w , y ), is concave in w . (b) Recall the lexicographic preference ordering on : for any iff either (i) or (ii) and . Prove that...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment