Microeconomics questions.

Succinctly account for the assertions and critiques of the cardinal utility.

Consider the following utility function : U(X,Y)=X^0.4 Y^0.6

1. Derive the demand equations for commodities  X and Y
2. If the current income available to spend on the two commodities is TZS 16 and the price of goods X and Y are TZS 2 and TZS 8 respectively, calculate the Lagrangian multiplier and interpret its meaning with respect to the consumer`s current situation.

What is output elasticity?

Show that for a profit maximizing firm, the optimum (first order) conditions for constrained output maximization are the same as those for cost minimization.

1. A firm`s total cost function is given by the equation TC=4000+5Q+10Q²  . Write an expression for each of the following cost concepts.

1. total fixed cost
2. average fixed cost
3. total variable cost
4. average variable cost
5. average total cost
6. marginal cost

2. From (a) above , determine the quantity that maximizes average total cost and demonstrate that the predicted relationship between marginal cost and average cost holds.

Write very short notes on each of the following

1. Marginal Rate of Technical Substitution (MRTS)
2. Economic region of production
3. Returns to scale
4. Opportunity cost
5. Expansion path

If MUa and MUb stands for marginal utilities for apples and bananas whose prices are Pa and Pb respectively, then the necessary condition for consumer equilibrium is MUa/MUb =Pa/Pb

The necessary and sufficient conditions for constrained output maximization and for constrained profit maximization are the smae.

When applying the marginal principle, you should pick the level at which activity`s marginal benefit equals its marginal cost.

According to the principle of diminishing returns, an additional worker decrease total output.