old exams handout

# old exams handout - Please answer exactly 10 questions....

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Please answer exactly 10 questions. Your score is out of 100 points, regard- less of which 10 questions you chose. It is possible to score more than 100%. Do NOT answer more than 10 questions, you will be penalized. C ( y ) = 1 2 y 3 3 y 2 + y + 80 : production and shut down price. (recall, in the SR, MC=AVC). f ( x 1 ;x 2 ) = x 1 x 1 3 2 : faces input prices of w 1 = 3 ; w 2 = 7 : What are the derived factor demand functions for both inputs, and how much does it cost to make the 100 units of output. C ( y ) = y 3 3 2 y 2 + 7 y; will be. 4. (10 points) Is the production function x 1 2 1 x 1 3 2 x 1 4 3 IRS, CRS or DRS? 5. (10 points) Please give an example (either algebraically or diagramatically) of a single input production function that displays increasing returns to scale, but nonincreasing marginal product for the input. f ( x ) = p x p = 6 ;w = 2 7. (5 points) Assume there are two inputs: K and L. If AP K = L 1 2 K 1 2 ; what is MP L ? min( x 2 1 ;x 2 ) : If x 1 costs \$45 and x 2 costs \$14, how much does it cost to produce 500 units of output? C ( y ) = y 3 5 y 2 + y + 40 : (i.e. at minimum e¢ cient scale of production in the long run, so they have new level of long run output. 1

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10. (10 points) If "homogeneous of degree k " if f ( ) = k f ( x ) for all 6 = 0 : homogeneity for CRS production functions? 11. (15 points) Please draw a couple isoquants for the production function q = K 2 + L 2 : 12. (15 points) If a production function is q = p K 2 + L 2 ; and w = r = \$1 ; how much does it cost to produce 100 units of this good? 13. (5 points) Please draw the MC, AC and AVC curves for the following cost function: C ( q ) = q 2 + 1 : 14. (15 points) What production function gives the cost function in #13? 2
Please answer exactly 5 questions. Your score is out of 100 points, regardless of which 5 questions you chose. It is possible to score more than 100%. Do NOT answer more than 5 questions, you will be penalized.

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## This note was uploaded on 12/05/2011 for the course ECON 100B taught by Professor Rauch during the Fall '07 term at UCSD.

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old exams handout - Please answer exactly 10 questions....

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