Intermediate microeconomic theory.

Accreditation vs Licensure.
August 7, 2017
You are a new physician setting up your own practice in a new town. You are researching the different MCOs offered in your area and are considering becoming a physician for one of these networks. You have also invited the sales representatives of several health plans to speak with you about the benefits of choosing their plans.
August 7, 2017
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Intermediate microeconomic theory.

For this exercise replace A with the last digit and B with the second-to-last digit of your ASU ID#. Assume preferences can be represented by the following utility function: u(x1; x2) = (A + 1) ln (x1) + ln (x2); a. Is the utility function monotonic? Justify. b. Determine the set of bundles that are ranked higher than the bundle (x1; x2) = (10; 10) c. Set up the utility maximization problem for the consumer, when facing prices p1 = 6; p2 = B + 1 and income m = 2520(A + 2): d. Solve the problem by Önding (x 1 ; x 2 ): e. Graph the budget set, a couple of indi§erence curves and the optimal choice. Exercise 8: Assume preferences can be represented by the following utility function: u(x1; x2) = x1 2 + 150×1 2×2 2 + 100×2 + x1 x2 a. Is the utility function monotonic? Justify. b. Obtain a bundle that is ranked higher than the bundle (x1; x2) = (100; 100) c. Set up the utility maximization problem for the consumer, when facing: prices p1 = 2; p2 = 1 and income m = 30: d. Solve the problem by Önding (x 1 ; x 2 ): Exercise 9: Assume preferences can be represented by the following utility function: u(x1; x2) = 4 ln (x1) + x2 a. Is the utility function monotonic? Justify. b. Set up the consumerís utility maximization problem for prices p1; p2 and income m (the general case) c. Solve the problem. You will obtain solutions x 1 (p1; p2; m); x 2 (p1; p2; m) in terms of the parameters of the model (p1; p2; m): 1

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