drafttest2_2

drafttest2_2 - Professor Peter Arcidiacono Midterm II March...

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Professor Peter Arcidiacono Midterm II March 30, 2004 Instructions : You have seventy-five minutes to complete the exam and there are seventy-five points on the exam. Make sure to get to all six questions. You must explain how you came to your answers to get full credit on all problems. 1. Consider the following game: 2 L C R T 1,1 4,2 -120,-75 1 M 5,8 3,7 -110,-85 B -75,-120 -85,-110 -95,-95 a. Find all pure strategy Nash equilibria (6 points) b. Is there a mixed strategy equilibrium where 1 mixes on T and M and 2 mixes on C and R? If there is, find it. If not, explain why not. (4 points)
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2. A firm has the following production function: x=K+L. The price of labor is w, the price of capital r, and the price of x is p. What are the firm’s conditional factor demands? What is the firm’s supply function? (9 points)
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3. A firm has the following production function: x=2K 1/2 +L 1/2 . Find the firm’s conditional factor demands and the firm’s cost function. (8 points)
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4. Both Mel and Jerry have identical indirect utility functions given by:
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This note was uploaded on 05/22/2010 for the course ECON 105D taught by Professor Cur during the Fall '09 term at Duke.

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drafttest2_2 - Professor Peter Arcidiacono Midterm II March...

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