Microeconomics

BrumCo is a firm that produces heaters in a perfectly competitive market. The production of each model train requires plaster (P), and grams of white paint (W). Their production function is given byf(...

Josh likes to eat Bananas (b), and Fish (f). His preferences are Cobb-Douglas, and can be presented by the utility function u(b, f ) = (1/5) (b − 2)(f + 3). Each banana costs 25 dollars and each fish...