ARE 100 exam2.1.w09

ARE 100 exam2.1.w09 - University of California, Davis...

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University of California, Davis Department of Agricultural and Resource Economics ARE 100B Winter 2009 Dr. Larson N a m e : Exam 1 --Febrary 24, 2009 The exam is worth 100 points; values of individual problems are listed in parentheses. Read each question carefully, be as complete as you can, and put down as much of your thought process as possible for each question. But answer the question asked-- don't put down things that aren't asked for. You should draw graphs where appropriate (and where asked!) to guide your analysis and help show your reasoning. Good luck!
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ARE 100B Exam 1 1 2 p 2 p 1. (15 points) Two firms produce jams which are close substitutes. Firm 1 produces blackberry jam and has a demand for its product which is (Firm 1) 11 200 4 4 Qp =− + while firm 2 produces raspberry jam and faces the demand curve (Firm 2) 21 80 4 4 =+ ⋅− Assume the marginal costs of both firms are zero. (5 pts) (a) What is each firm's price reaction curve?
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ARE 100 exam2.1.w09 - University of California, Davis...

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