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Unformatted text preview: Econ3101 - Section 003 Intermediate Microeconomics Xavier Vinyals-Mirabent * Department of Economics University of Minnesota. Practice Final. Included are a few practice problems to help you prepare for the final exam. These problems cover material since the last midterm. However, the final exam will be cumulative and will cover material from the entire class. You are encouraged to also study all of the problems sets, previous midterm practice problems, previous exams, and the course notes. As for the exam, calculators are allowed, rulers are allowed, and the use of pencil as opposed to pen is strongly encouraged. Best of luck! * Borrowed from Erick Sager with permission. 1 1. Cournot Duopoly with Heterogeneous Costs Consider a Cournot duopoly with both firms producing a homogeneous good and facing linear demand of the form: P ( Q ) = 255- 8 Q , where Q = q 1 + q 2 . Assume the firms have the di ff erent costs. Firm 1 has costs: C 1 ( q ) = 3 q + 2. Firm 2 has costs: C 2 ( q ) = 4 q + 1.+ 1....
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- Spring '11
- Game Theory, Equilibrium Output, Nash equilibrium output, Bertrand Duopoly