show indirect utility function is convex

Show that the indirect utility fuction v(p,y) = [x1(p,y))^rho + (x2(p,y))^rho]^1/rho is a quasi convex function of prices and income

price indifference curves

In the two good case, the level sets of the indirect utility fuction in the price space are sets of the form {(p1,p2) 'vertical line' v(p1,p2,y) = v0} for when v0 is an element in the set of real numbers These are sometimes called price-indifference curves. Sketch a possible map of price-indifference curves. Give separate arguments to suppor tyour claims as to their slope, curvature, and the direction of increasing utility note: I don't have the equation editor so where it says 'vertical line', there is a vertical line in the equation

micro econ graph problem based on article that is attached

I need some guidence on how to create the graphs in the following questions: (attached is the article that is is based on) Assume that steel is a homogeneous good (i.e., there is only one type of steel). Based on the information in the article, draw two short-run cost graphs to represent the US steel industry without any tariffs. One graph should represent a typical US integrated steel producer, the other should represent a typical US mini-mill steel producer. On your graph, label price, MC, ATC, AVC and profits. Explain why your graph looks the way it does.

Price elasticity - the midpoint method

Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $5 and the government wants to reduce smoking by 20%, by how much should it increase the price? What is the new price? Use the midpoint method in your calculations.

Production functions and cost

i. – Professor Smith and Professor Jones are going to produce a new introductory textbook. Production Function : q = (SJ)1/2 Q = number of pages in finished book S = number of working hours spent by Spent J = number of working hours spent by Jones Smith values labor at $20 per working hour, she spent 900 hours providing the first draft. Jones, labor valued at $80 per working hour will revise Smith’s draft. (a) How many hours will Jones have to spend to produce a finished book of 150 pages? Of 300 pages? Of 450 pages? (b) What is the marginal cost of the 150th page of the finished book? Of the 300th Page? Of the 450th page? ii. – Suppose a firm’s constant-return-to-scale p... click for more