ISI INTERVIEW PREP

[deepak]

Neha, If the determinant is 0,
x^2 - (k-3)x  + k = 0
For x to be real and to have more than 1 distinct value, the discriminant is strictly positive
ie, (k-3)^2 - 4k > 0
or k^2 - 10k + 9 > 0
or (k-9)(k-1) > 0
This would mean the least positive value of k is 1, right?

[anon_econ]

i did it the same way but then shouldn't it be 9?

[anon_econ]

oh no it should be 10. neha is right.

[anon_econ]

deepak it can't be 1 bcoz b/w 1 and 9 the discriminant will be negative

[deepak]

I'm not sure I understand how 10? Could you explain, please?

ALso, i picked 1 and not 9 because the 'least positive integral value' of k is sought.

[deepak]

Extremely silly of me! Thanks :)

[Mr. Nobody]

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[anurag]

Pardon , @Ram and @vasudha : how did you solve for LTC? :/ (Q.7 part (i))

[anon_econ]

u find the value of k that minimizes short run total cost. so put dC/dk=0. get k. substitute in the total cost function.

[anon_econ]

can u plz explain again how u r getting the equilibrium value of y?

[anurag]

thnx :)

[neha]

For question no. 9, REI of the same paper,, can somebody confirm the following answers?

part (a),, i am getting a =(-1+sqrt of 5)/2 or a=(-1-sqrt of 5)/2 and the function is differentiation at x=0 for both the values of a.

part (b) maximum value of x1x2 =8.

Thanks

[anurag]

ya even m getting the same answers

[anurag]

wt do u think will be d answer in case of minx1x2 ? -8?

[neha]

@anurag: I think yes. It will be -8 ,, function is not differentiable at x=0 ,, i forgot to write "not" so is that what u are getting?

[anurag]

ya sry jst checked it again ,no its nt differentiable at 0..

[Mr. Nobody]

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[deepak]

Yes I did get a/(a+b) for labor supplied. I don't know 'why' in the economic sense :/ . Mathematically, I think it could perhaps be because the nature of the 'budget constraint' is such that, irrespective of the wage, the Leisure intercept is a constant, and hence, the tangency between the utility indifference curves and the budget lines always occurs at the same value of labor supply (or leisure preference) but consumption is shifted up or down depending on the value of wage. Perhaps because the S.E and I.E are equal and cancel each other out?

[Preet]

Hi Folks,

Look at Q6(b) of JRF 2012 and provide an answer.

[neha]

With ref to question 8 part (b), i am getting Y= A*Theta*[a+(a+b)]^Theta + Investment.

The way the i have done is i have found out labor demand function by equating MPL =real wage,, and hence found out w =A*Theta*[a+(a+b)]^(1-Theta).. Since labor supply is fixed, equilibrium labor quantity will be        a+(a+b) so C= A*Theta*[a+(a+b)]^Theta, ergo Y= A*Theta*[a+(a+b)]^Theta + Investment. Any thoughts around it?