Question: 1. Answer four of the following, each question carries equal weight. In each case answer True, Fa…

30 Apr Question: 1. Answer four of the following, each question carries equal weight. In each case answer True, Fa…

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1. Answer four of the following, each question carries equal weight. In each case answer True, False or Uncertain and explain your answer. Limit each answer to one page (a) A firm has a cost function that shows the minimum cost of producing a given level of output, (b) Consider a person who begins day 0 with 100 euro. At the start of the next day her money is halved and (c) Consider the system of equations Q. Cost rises with Q at an increasing rate. Based only on the information provided then C-exp(Q) would be a valid representation of this firm’s cost function. this continues for 2 weeks (14 days). After N days the amount of money she holds is given by the formula (Money-100 2N) and the amount of money after 14 days is less than el. This system has a unique solution (d) Suppose an individual’s health (H) depends on the amount they exercise (E) and their weight (W) and 82H Since–= 0, this means that the benefit of exercise is the same is given by the relationship for all people irrespective of their weight. (e) Consider an individual who is offered €1000 ten years from now. The interest rate is 30% and interest is compounded annually. The present value of this offer is approximately 50

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