Hello, I would like the answer to the point 1 and 4, Question I Answer the following questions and explain to get the full marks. 1. Assume the consumer is

Hello, I would like the answer to the point 1 and 4, Question I
Answer the following questions and explain to get the full marks.
1. Assume the consumer is indifferent between the bundles B1 = (4,8) and B2 = (16, 4). If the
consumer likes diversity, which of the following bundles will he prefer to B, and B2
(a) B3 = (11, 7)
(b) B3 = (13, 5)
(c) B3 = (9,8).
Explain.
2. is an indifference curve and how is it useful in solving the consumer’s choice problem.
3. is the main difference between the consumer’s theory and the producer’s theory.
4. A student claims that an increase in the total factor productivity z will increase the marginal
product of labour but not that of capital. Is this statement true or false?
5. State the two approaches that can be used to compute the competitive equilibrium. Which
of two approaches is not applicable in some situations? Give an example of such situations.

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