ps3 - Economics 101 - Introductory Microeconomics Fall...

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3d94a5f9c0815e85c982b62adbc3c8039d399d73.xls Instructions 1 How to submit Excel Problem Sets Cornell Code of Academic Integrity Economics 101 -- Introductory Microeconomics Fall 2007, Prof. John Abowd Excel Problem Set 3 Assigned November 7, 2007. Due November 28, 2007 at 9:00am This problem set deals with a variety of topics from the specialized lectures at the end of the course. Fill in this information before you begin (up to 10 points can be lost for ignoring or deleting this page): Name: Network ID: Section number: TA name: You must do this assignment in Microsoft Excel and submit it using the course web site. It will be graded by your TA, after which you can collect it from the course web site (click the link at the bottom of this sheet for instructions on how to do this). YOU ARE EXPECTED TO ANSWER THESE QUESTIONS YOURSELF. YOU SHOULD NOT COPY THE SPREADSHEET OF ANOTHER STUDENT. IF YOU SUBMIT ANOTHER STUDENT'S ANSWERS, YOU WILL BE SUBJECT TO PENALTIES UNDER THE CORNELL CODE OF ACADEMIC INTEGRITY (see link below). IF YOU WORK IN A GROUP, YOU MUST STILL SUBMIT YOUR OWN ANSWERS, NOT COPIES OF YOUR GROUP'S ANSWERS. Answer each question in the worksheet provided. Each question is on a separate worksheet -- look along the tabs at the bottom to see the sheet names. Make sure your answers are neatly presented. Use text boxes for text answers and labeled graphs, when requested. If your TA has trouble reading your answer because you have been sloppy (for example, by typing an answer in a long line of a single cell), you will be marked down. We strongly suggest that you Print Preview your answers before submitting the problem set. If the Print Preview looks good, your TA will have no trouble grading your problem set. Grade: Comments:
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3d94a5f9c0815e85c982b62adbc3c8039d399d73.xls Q1 2 Price Total Cost Profits 6.50 0 6.00 1,000 5.50 2,000 5.00 3,000 4.50 4,000 4.00 4,800 3.50 5,600 3.00 6,400 2.50 7,200 2.00 8,000 1.50 8,800 1.00 9,600 0.50 10,400 Cr ê pes in Universityville Total Quantity Demanded Marginal Cost Total Revenue Marginal Revenue Question 1 Monopoly Larry runs the only crêpe stand in his hometown of Universityville. Larry faces fixed costs of $5,000 per year, and for each crêpe he makes, it costs him an additional $1.00/unit. The table below shows the annual demand for crêpes in Universityville. a) Complete the table below. b) At what price is total (consumer plus producer) surplus maximized? What are Larry's profits at this price? c) What price does Larry charge for a crêpe in order to maximize his profit? What are Larry's profits at this price? d) Graph marginal costs, marginal revenue, and quantity demanded on a supply and demand diagram. Illustrate the surplus-maximizing price and quantity, the profit-maximizing price and quantity, and the deadweight loss associated with monopoly production.
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3d94a5f9c0815e85c982b62adbc3c8039d399d73.xls Q1 3
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3d94a5f9c0815e85c982b62adbc3c8039d399d73.xls Q2 4 Universityville Crêpes Price 5.00 1,800 1,200 4.50 2,200 1,800 4.00 2,400 2,400 3.50 2,600 3,000 3.00 2,800 3,600 2.50 3,000 4,200 2.00 3,200 4,800 1.50 3,400 5,400 1.00 3,600 6,000 0.50 3,800 6,600 Non-students in Universityville Price 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 Students in Universityville Price 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 Quantity demanded by students Quantity demanded by non-students Quantity
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ps3 - Economics 101 - Introductory Microeconomics Fall...

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