ECONS 301 - INTERMEDIATE MICROECONOMICS
Midterm #2 ANSWER KEY
Exercise 1
a) When the amount of capital is fixed at k=1, total product is
1
(, ) = [243 + ( 9)3 ].
3
The average product of labor is
(1, ) =
=
,
and the marginal product of labor is
(1,)
1
(
EconS 301
Felix Munoz Garcia
Quiz 1
Chapter 2 Supply and Demand
1. Suppose that demand for apples is linear, = 100 12. At P = 5 and Q = 40, the price
elasticity of demand ( ) is:
a) -2/3
b) 2
c) -12
d) 3/2 (Correct)
ANSWER:
Price elasticity of demand ( )
ECONS 301 - INTERMEDIATE MICROECONOMICS
Quiz #5 (Production Theory) ANSWER KEY
Exercise 1. Does the production function Q(K , L ) = K L exhibit increasing, constant, or decreasing
returns to scale?
Answer:
2
If we increase both inputs by a common factor,
ECONS 301 - INTERMEDIATE MICROECONOMICS
Final Exam Answer key
Exercise #1 Capturing surplus using a block pricing [25 points]
Consider a monopolist facing a linear demand p(Q)=20-Q, and marginal cost MC=2.
a) If the monopolist charges the same price for a
EconS 301
Written Assignment #3
Chapter 6: Inputs and Production Functions
Chapter 7: Costs and Cost Minimization
ANSWER KEY
Exercise 6.12
Suppose the production function is given by the following equation (where a and b
are positive constants): Q = aL +
EconS 301
Homework #2 Utility Maximization
Answer key
Exercise #1
Part 1. Assume p1 =1 and p2 = 2, and the consumer has income M = 10. Find the consumers
budget constraint. Find utility-maximizing consumption bundles for the following utility
functions:
(
ECONS 301 - INTERMEDIATE MICROECONOMICS
Midterm Exam #1 Answer key
Exercise 1 [25 points]
Consider the utility function U(x,y)= 3 x + y .
a. Is the assumption that more is better satisfied for both goods?
Yes, the more is better assumption is satisfied fo
EconS 301 Written assignment #5
Oligopoly
Consider the inverse demand function (1 + 2 ) = 100 1 2 , where y1 and y2 represent the output
level of firm 1 and 2, respectively. Assume that the cost functions are C1(y1) = 25y1 for firm 1 and C2(y2)
= 25y2 for
ECONS 301 WRITTEN EXERCISES #1
UTILITY FUNCTIONS Answer key
Exercise #1:
3.15. Consider the utility function U(x, y) = 3x + y, with MUx = 3 and MUy = 1.
a) Is the assumption that more is better satisfied for both goods?
b) Does the marginal utility of x d
EconS 301
Written Assignment #4 ANSWER KEY
Exercise 9.10
Newsprint (the paper used for newspapers) is produced in a perfectly competitive market. Each
identical firm has a total variable cost TVC(Q) = 40Q + 0.5Q2, with an associated marginal cost
curve SM
EconS 301
Written Assignment #6 Chapter 14: Strategy and Game Theory
Answer Key
Exercise #14.5
In the Castorian Airline market there are only two firms. Each firm is deciding whether to
offer a frequent flyer program. The annual profits (in millions of do
EconS 301 Intermediate Microeconomics
Review Session #3
1.
A consumer purchases two goods, food ( F ) and clothing (C ) . Her utility function is given by
U ( F , C ) = FC + F . The marginal utilities are MU F = C + 1 and MU C = F . The price of
food is P
EconS 301 Intermediate Microeconomics
Review Session #5
Exercise 1
You might think that when a production function has a diminishing marginal rate of technical substitution
of labor for capital, it cannot have increasing marginal products of capital and l
EconS 301 Intermediate Microeconomics
Review Session #10 Chapter 13: Market Structure and Competition
Exercise 13.2. A homogeneous products duopoly faces a market demand function given by
P = 300 3Q , where Q = Q1 + Q2 . Both firms have constant marginal
EconS 301
Quiz #4 Demand, Income and Substitution Effects
Answer key
xy . Let his income be I=$120, and
Consider an individual with Cobb-Douglas utility function U(x,y) =
the price of good be Py = $10.
a) Find the marginal rate of substitution of this con
Econs 301
Felix Munoz Garcia
Quiz 3
Chapter 4 (Consumer choice) ANSWER KEY
1.
Suppose the price of A is $20 per unit, the price of B is $10 per unit, and the consumers
income is $1000 per month. The equation of the budget line is
a)
1000 = 10A + 20B
b)
10
CHAPTER 3
Quick Check
1. a. True.
b. False. Government spending excluding transfers was 20.4% of GDP.
c. False. The propensity to consume must be less than one for our model to make sense.
d. True.
e. False.
f. False. The increase in equilibrium output is
S UMMER 2013: ECON 322 L ECTURE N OTES
T OPIC 6: P UTTING A LL M ARKETS T OGETHER :
T HE AS-AD M ODEL
Fei Tan
Department of Economics, Indiana University
Disclaimer: these are notes that I used by myself to lecture from and for educational purposes only.
ECON2123 (Spring 2012)
14 & 15.3.2012 (Tutorial 5)
Chapter 4 Financial Markets
The demand for money
Assumptions:
There are only two assets in the financial market: money and bonds
Price is fixed and Y is given, that is nominal GDP is given
Wealth = Md +
13.
Brazil
Canada
China
France
Germany
India
Iran
Italy
Japan
Mexico
Russia
Saudia Arabia
South Korea
United Kingdom
United States
Brazil
Canada
China
France
Germany
India
Iran
Italy
Japan
Mexico
Russia
Saudia Arabia
South Korea
United
Kingdom
United Stat
1/11/17
Most of the time we will consider a pure market economy also called a free
enterprise economy also called an economy with unrestricted voluntary exchange.
Partial Equilibrium- when you look at the equilibrium of a single market. Ex. The
market for
Capitalism and the Global
Economic Crisis of the U.S.
2007 Until.
Types of Economic Systems
Traditional Economy- shaped by tradition. The
work that people do, the goods and services
they provide, how they use and exchange
resources all tend to follow long
SLIDES BY SOLINA LINDAHL
CHAPT
ER
1
First Principles
What you will
learn in this
chapter
A set of principles for
understanding the economics of
how individuals make choices
A set of principles for
understanding how economies
work through the interaction
Shani Ricks
Due April 25, 2016
Macroeconomics
Professor Crant
Acrons vs Stash Invest
What do you know about investing? Have you ever thought about investing your
money but you dont know where to start? Are you afraid of risks that might come with
investin
1. The study of a single firm and how it determines prices would fall under the
study of: microeconomics
2. Macroeconomics deals with: the working of the entire economy or large
sectors of it
3. C
4. C. 5 million scones
5. the productions possibility fron
10/1/15 Econ
Intentional Disequilibrium Price
Ceiling price- price which is set and you are not allowed to go above it. (maximum)
Floor price price which is set and you are not allowed to go below that price.
(minimum)
Somehow a price is being established
A monopolist is not a price taker. The monopolist perceives demand to be a
downward sloping line.
Price monopolist uses is based off quantity.
A firm chooses to maximize proifits.
Why are monopolies considered to be bad?
when a competitive industry become
EconS 301
Felix Munoz Garcia
Quiz #2
Chapter 3 Preferences and Utility ANSWER KEY
1. Assume that a consumer prefers watching Yu-Gi-Oh to watching Teen Titans, and that this
same consumer prefers watching Teen Titans to watching Sponge Bob. Further assume
EconS 301 Intermediate Microeconomics with Calculus
Homework #0 ANSWER KEY
Exercise #1: Exercise 2.18 from Besanko and Braeutigam
a) When the price of gasoline goes up, it becomes more expensive to drive a private automobile;
because private automobiles a