Rifyal Garda Pambudi

EMBA A 49A
Managerial Economics
Dr. Syamsul Hidayat Pasaribu

Homework
Number 3; Chapter 4
A consumer must divide $600 between the consumption of product X and product Y. The
relevant market prices are Px = $10 and Py = $40. (LO2)
a. Write the equation for the consumer’s budget line
Budget Line menentukan batas maksimal consumer untuk membeli satu atau lebih barang
dari pendapatan yang dimiliki. Rumus consumer’s budget line adalah sebagai berikut :
P x X + P yY = M dimana :
$10X + $40Y = $600 Px = Harga barang X
X = Barang X
Py = Harga barang Y
Y = Barang Y
M = Pendapatan

b. Illustrate the consumer’s opportunity set in a carefully labeled diagram.

Untuk memudahkan membuat grafik dalam bentuk fungsi, rumus di atas dapat dikalikan
dengan 1/Py, sehingga didapat :
Kesimpulan :
𝑃𝑥 𝑀
𝑋+𝑌 = Konsumen hanya dapat membeli maksimal 15 barang
𝑃𝑦 𝑃𝑦 y
Y apabila tidak membeli barang X atau maksimal 60
𝑀 𝑃𝑥 15 barang X apabila tidak membeli barang Y.
𝑌 = − 𝑋
𝑃𝑦 𝑃𝑦
$600 $10 Budget Line of Y = 15 – 0,25X
𝑌 = − 𝑋
$40 $40
𝑌 = 15 − 0,25𝑋 X
0 60

c. Show how the consumer’s opportunity set changes when the price of good X increases to
$20. How does this change alter the market rate of substitution between goods X and Y?
Setelah harga barang X naik menjadi $20, maka consumer’s budget line menjadi :
$20X + $40Y = $600
Kemudian fungsi yang didapatkan menjadi :
$600 $20
Y 𝑌 = $40
− $40 𝑋 → 𝑌 = 15 − 0,5𝑋

15 Initial Budget Line of Y = 15 – 0,25X

New Budget Line of Y = 15 – 0,5X

Kesimpulan :
x Konsumen hanya dapat membeli maksimal 15 barang Y
0 30 60
apabila tidak membeli barang X atau maksimal 30
barang X apabila tidak membeli barang Y.
Number 3; Chapter 4
According to The Wall Street Journal, Mitsubishi Motors recently announced a major
restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the
restructuring plan Mitsubishi conducts an analysis of how labor and capital are used in its
production process. Prior to restructuring Mitsubishi’s marginal rate of technical substitution
is 0.12 (in absolute value). To hire workers, suppose that Mitsubishi must pay the competitive
hourly wage of ¥1,800. In the study of its production process and markets where capital is
procured, suppose that Mitsubishi determines that its marginal productivity of capital is 0.8
small cars per hour at its new targeted level of output and that capital is procured in a highly
competitive market. The same study indicates that the average selling price of Mitsubishi’s
smallest car is ¥1,200,000. Determine the rate at which Mitsubishi can rent capital and the
marginal productivity of labor at its new targeted level of output. To minimize costs Mitsubishi
should hire capital and labor until the marginal rate of technical substitution reaches what
proportion?
Answer :
Cost-Minimizing Input Rule
To minimize the cost of production, a firm should employ inputs such that marginal rate of
technical substitution is equal to the ratio of input prices :
𝑀𝑃𝐿 𝑤 MPL = Marginal Product of Labor
=
𝑀𝑃𝐾 𝑟 MPK = Marginal Product of Capital
r = Price of Capital
𝑤 w = Price of Labor
𝑀𝑅𝑇𝑆𝐾𝐿 =
𝑟 MRTSKL = Cost Minimizing Input Mix

The average selling price of Mitsubishi’s smallest car is ¥1,200,000

r = MPk x P
= 0.8 x ¥1,200,000
= ¥960,000
𝑀𝑃𝐿 𝑤
=
𝑀𝑃𝐾 𝑟
𝑀𝑃𝐿 0.8
=
1,800 960,000
MPL = 0.0015 (Marginal Product of Labor)
𝑤
𝑀𝑅𝑇𝑆𝐾𝐿 =
𝑟
1,800
𝑀𝑅𝑇𝑆𝐾𝐿 =
960,000
MRTSKL = 0.001875 (Cost are minimized when the value equal to this value)