DSE 2009 ( A ) Q 6, 15,20 (B) Q 4 ,9,12,30,33,35

[maahi]

35 > a fall in d interest rate
d) why won't lender reduce his savings ??

http://www.alexmthomas.com/wp-content/uploads/2007/02/option-a-2009.pdf

[kogo]

hey mauli
ans15 part a can be done as follows(though it is a little wierd way to do):
the tc functn is=L+2K=M
the production function is of perfect compliments so L=K
tc= 3L=M
now looking at the options the only option that divides is 12
this gives K=L=4
put this in production function to recheck with y= 12

[kogo]

sorry the above message is for maahi

[maahi]

thanks :-)