finalsam econ313

Intermediate Microeconomics: A Modern Approach, Seventh Edition

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Economics 313 SAMPLE FINAL EXAMINATION J. Wissink Cornell University Directions: Answer all questions. Write legibly, concisely, and coherently. Be sure to label all axes, functions, and variables you use. READ QUESTIONS CAREFULLY. Draw pictures whenever possible. Total time for the test is 120 minutes. The point score for each question is equal to TWICE the amount of time allotted for the question. Maximum points available = 240. Part I. Short essay: 48 minutes, 12 minutes each; Answer all four. Answer the question OR do the stated problem OR critically evaluate the following statements and explain why or in what way the statements are true, false, or uncertain. 1. Recall Abe and Betty and suppose: u Abe = min{2F, 1C} and u Betty = min{1F, 1C}. Assume there is no production in this "economy" and that Abe and Betty each have 20 units of food and 10 units of clothing. a. What allocations of food and clothing to Abe and Betty lie on the contract curve? Illustrate on a carefully labeled Edgeworth box diagram. b. Represent/transcribe the allocations on the contract curve in/into a carefully labeled and numbered utility possibility frontier (u.p.f.) diagram. 2. Prove that a profit maximizing simple monopolist would never choose to operate on the inelastic portion of his/her demand curve. 3. Derive the long-run total cost function for widgets assuming that widgets are produced
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finalsam econ313 - Economics 313 SAMPLE FINAL EXAMINATION J...

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