Re: jnu 2012 doubts!

Posted by jess on May 17, 2013; 5:53pm
URL: http://discussion-forum.276.s1.nabble.com/jnu-2012-doubts-tp7580709p7580950.html

I think that the logic is this for 91(b)

You have to make sure that the total number of villagers end up buying 2 cows. Thus, MC=MR holds when 11+t is roughly equal to 18 (MR of 2 cows).

This happens at t=7. but at t=7, aggregate income of village = 36 - (11+7)x2 = 0

for t = 6, they buy 2 cows, and agg income = 2

then for t = 0, individuals end up buying 4 cows instead. t=11 means MC=22 by individual. thus only 1 cow is bought. so condition is not satisfied

for t<6. say t=5, MC= 16 and t=4, MC falls even further thereby increasing number of cows grazed.

for 6<t<11 MC>MR for n = 2 (so not applicable)

anything beyond t>11, no cow is bought.

Thus only t=6 is possible.