Solution :
a). Bundles 
= U ( _____ , 2), lie on the same indifference curve. Suppose missing numbers is x.
So, 
(40 x 5) + (2 x 5) = 50x + (2 x 2)
210 - 4 = 5x
So Alexander has 
apples and 
bananas. The indifference curve though also include bundle.
Therefore, (41.2, 2)
b). 
= 0.4
So Alexander has apples and bananas with this bundle. Alexander would like to give up 
unit apples for a banana.
Answer:
firm can change output levels without having any significant effect on price.
Explanation:
In the case when we say that the firm is a price taker that means the firm has the power to change the level of an output but this does not have any kind of impact on the price. They accepted the price for the prevailing market and each unit could be sold at the similar market price. It could impact the market price also they enjoy the pricing power
Therefore the above statement should be considered
Answer:
The Mean return = 0.8*16.5% + 0.2*-11.6%
The Mean return = 0.132 + (-0.0232)
The Mean return = 0.132 - 0.0232
The Mean return = 0.1088
The Mean return = 10.88%
Variance = 0.8*(16.5%-10.88%)^2 + 0.2*(-11.6%-10.88%)^2
Variance = 0.8*(5.62%)^2 + 0.2*(-0.72%)^2
Variance = 0.012634
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