Simple Micro doubts

[Homer Simpson]

1) Requiring airline travelers to spend at least one Saturday night away from home to qualify for a low fare is an example of :

a) uniform pricing
b) perfect price discrimination
c) second degree price discrimination
d) third degree price discrimination

2) Consider and economy with 10 units of endowment and 4 individuals. The pareto optimum allocation is given by: (please explain this one - get stuck in these)

a) (2,5,3,2)
b) (2,2,2,2)
c) (2,2,3,3)
d) none of the above

3) For a leontief production function, the output expansion paths for two different sets of input prices

a) intersect once
b) are parallel
c) are identical
d) none of the above

[Homer Simpson]

Also, please help out with this one - not working in the usual way!

Find the supply function of a competitive firm if total cost curve is: TC = e^(aQ+b)

[Ankur9]

1) c - second degree price discrimination

2) c

cannot be 'a' as the total goods possessed by individuals = 2+5+3+2 = 12 > 10. This isn't feasible as this exceeds the total endowment.

cannot be 'b' as the total goods possessed by individuals = 2+2+2+2 = 8. There are still 2 units of good that can be given to either of the 4 individuals without making anyone worse off.

For 'c' total goods = 2+2+3+3 = 10. Any trade in this allocation would certainly make someone worse off. Hence this is Pareto efficient.

[Homer Simpson]

thank you! any clue on the others?

[Ankur9]

Not sure about either but my guesses would be:

3) c

Y = min(ax,by) is a Leontief function. Output expansion path would be ax = by irrespective of the price of input. So for two sets of prices, it should be identical.

For the supply curve one P = MC = a*e^(aQ+b)

Solving explicitly for Q would give Q = (1/a)*ln(P/a) - (b/a)

[Anjali]

I agree with Ankur in all the questions.