14.01 Fall 2017
Homework 3
Due online 10:00 am on October 13 2017
No Late Problem Sets Will Be Accepted!
Problem 1 [21 points]
True/False/Uncertain. Please fully explain your answer, including diagrams where appropriate. Points are awarded based on explan
Fall 2017 14.01 Problem Set 2
Due online 10am on October 6th, 2017 (no late Psets accepted)
Problem 1: True or False (28 points)
For each of the following statements, indicate if they are True or False. Justify your
answer.
1. (4 points) Suppose potatoes
14.01 Fall 2010
Problem Set 9 Solutions
1. (28 p oints) R&D and eect of government b orrowing
A pharmaceutical company is considering whether to invest in the research and development of a new
drug. It will incur a cost of $100 million starting in this ye
14.01 Fall 2010
Problem Set 8 Solutions
1. (36 points) Two rms, A and B, are competing in the production of a homogenous good. The goods
marginal cost for both rms is equal, M C = $25. Assuming linear reaction functions, describe what
would happen to outp
14.01 Fall 2010
Problem Set 7 Solutions
1. (20 points) For each of the following statements, please indicate whether they are TRUE, FALSE, or
UNCERTAIN. No credit will be given without an explanation as to why your claim is true.
(a) (5 points) If a monop
14.01 Fall 2010
Problem Set 6 Solutions
1. (10 points) In Cambridge, shoppers can buy apples from two sources: a local orchard, and a store that
ships apples from out of state. The orchard can produce up to 50 apples per day at a constant marginal
cos
14.01 Fall 2010
Problem Set 5 Solutions
1. (24 points) You manage a factory that produces cans of peanut butter. The current market price is
$10/can, and you know the following about your costs:
M C (5) = 10,
M C (4) = 4,
AT C (5) = 6
AT C (4) = 4
(a) (8
14.01 Fall 2010
Problem Set 4 Solutions
1. (27 points) For each of the following production functions, sketch a representative isoquant (2 points).
Calculate the marginal product for each input, and indicate whether each marginal product is diminish
ing,
14.01 Fall 2010
Problem Set 3 Solutions
1. (12 points) Assume the government has two policy options, a cash grant of $200 and providing food
stamps worth $200.
(a) (3 points) Draw the budget constraint faced by the consumer in each of these two situations
14.01 Fall 2010
Problem Set 2 Solutions
1. (10 points) Annie and David are painting their apartment. At the paint store, David says he prefers
Canary Yellow to Bumblebee Yellow, Lime Yellow, and Crayola Yellow. Annie nds new paint samples
and asks David
14.01 Fall 2010
Problem Set 1 Solutions
1. (25 points) For each of the following scenarios, use a supply and demand diagram to illustrate the eect
of the given shock on the equilibrium price and quantity in the specied competitive market. Explain
whether
Page 1 of 7
Massachusetts Institute of Technology
Department of Economics
14.01 Principles of Microeconomics
Final Exam
Wednesday, October 10th, 2007
Last Name (Please print):
_
First Name:
_
MIT ID Number:
_
Instructions. Please read carefully.
The exam
Page 1 of 8
Massachusetts Institute of Technology
Department of Economics
14.01 Principles of Microeconomics
Exam 2
Tuesday, November 6th, 2007
Last Name (Please print):
_
First Name:
_
MIT ID Number:
_
Instructions. Please read carefully.
The exam has a
Page 1 of 7
Massachusetts Institute of Technology
Department of Economics
14.01 Principles of Microeconomics
Final Exam
Wednesday, December 19th, 2007
Last Name (Please print):
_
First Name:
_
MIT ID Number:
_
Instructions. Please read carefully.
The exam
14.01: Midterm 1 review
Unit 1: Supply and demand
Lecture 2: Supply and Demand
I. Supply and demand diagrams: demand shows willingness of consumers to buy the good;
supply shows willingness of producers to sell; intersection is market equilibrium.
II. S
14.01: Final Review
December 3, 2010
Unit 5: Market Power
1
Lecture 17: Oligopoly Continued (Chapter 12)
I. Cournot Math
Cournot: All rms set quantities at the same time
Calculate residual demand for a given rm and solve its prot maximization problem
14.05: Section Handout #1
Solow Model
TA: Jose Tessada September 16, 2005
Today we will review the basic elements of the Solow model. Be prepared to ask any questions you may have about the derivation of the model, most of the equations we will cover tod