{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ425_HW2 - Econ 425‐100 Spring 2011 Instructor Fan Ji...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Econ 425‐100 Spring 2011 Instructor Fan Ji Homework 2 (50 Points Total) Name_______________ Due on March25th 2011 Part One (12 points) : Multiple Choice (2 points each) Choose the one alternative that best completes the statement or answers the question. #2 In the representative consumer model without PD model, a. In equilibrium, the number of firms is greater than the social optimum. b. All goods are considered perfect substitutes. c. If fixed costs are zero, there is no output inefficiency in equilibrium. d. All of the above. e. Only (a) and (b) are correct. Part Two: Short Questions (38 Points) Be clear about your answer and use GRAPH when necessary #1 (7 points) b. #2 a. Oligopoly Slide page 23, given all the conditions in class, try to derive all the results shown below step by step. (16 points) b. And in Oligopoly slide page 11 , show the step by step how to get profit when one is cooperate while another one is not. E.g. profit1 = 48.6 ; profit2=72.9. (8 points) #3 (7 points) One major criticism raised against the use of the Cournot oligopoly model is that firms normally choose prices, not quantities when they compete with each other. In that sense, the Cournot model is basically a “textbook example”. Is this true or not, give some example. ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern