Econ 3070
Prof. Barham
Problem Set- Chapter 2 Solutions
1. Ch 2, Problem 2.1
The demand for beer in Japan is given by the following equation: Q d = 700
2P P N + 0.1I, where P is the price of beer, P N is the price of nuts, and I is
average consumer incom

ECON 3070 002 Spring 2014
Problem Set 5
(Due on Mg]; 2'! in dam)
1. A monopolist sells a product with a total cost function TC = 1200+ 0.5 Q2. The market demand curve is given
by the equation P = 300- Q.
21. Find the protmaximizing output and price for th

ECON 3070-002 Spring 2014
QUIZ 2
Answer tbellaumg quartiorz. You must show allyour mm to getd/ credit! Name: g E Z I
1. Consider the production function Q = KL 4- K . At point A , the rm uses K = 4 units of capital and L = 5
units of labor. At point B , a

In Class Assignment 2 (PS 6)
1. Consider the 0110ng game, where x>0:
Firm 2
High Price Low Price
Firm 1 High Price 140, 140 20, 160
LOW Price mm
a. For What values of 1: do both rms have a dominant strategy? What is / are the Nash equibum/equih'btia in
th

Econ 3070
Prof. Barham
Problem Set Chapter 4 Questions
1. Below is the equation the budget constraint for Joe for his coffee (C) and
doughnuts (D) consumption. His income is 10, the price of doughnuts is $2 and
the price of coffee is $1.
Income= 1C + 2D
D

Econ 3070
Prof. Barham
Problem Set - Ch 1 Solutions
1. Ch 1, Problem 1.2
Suppose the U.S. market for corn is competitive, with an upward-sloping supply
curve and a downward-sloping demand curve. For each of the following
scenarios, illustrate graphically

Economics 3070
Problem Set Chapter 3 Solutions
1. Graph a typical indifference curve for the following utility functions and
determine whether they obey the assumption of diminishing MRS:
a. U(x, y) = 3x + y
y
3
Slope = -3
U =3
1
x
Since the indifference

ECON 3070 002 Spring 2014
MIDTERM EXAM #1
(Blame DO NOT 02m cfw_be exam till you are told to!)
Name: Ki". E Score: /W
Instruction:
1. You have 50 min to nish these 4 short answer questions. Allocate your time wisely.
2. You can used a simply calculator wh