Problem Set 6
Microeconomics: 33001
Professor Owen Zidar
1. Monopoly with constant marginal cost
A monopoly operates in a market with (inverse) demand
P (Q) = 20
Q
5
The monopolys marginal cost is 10.
(a) Find the monopolys optimal output and price. (Hin
Econ 21
Prof. Doyle
Winter 2015
Problem Set 9: Market Failures
Question 1. Read Moral Hazard article posted on Blackboard. What do you think of the
quote Moral Hazard is hogwash?
Question 2. Clare manages a ski shop. Her utility function is given by U = w
Econ 21
Prof. Doyle
Winter 2015
Problem Set 8: Monopoly and Oligopoly, plus a little Welfare
Question 1. Problem 14.1
Question 2. Problem 14.2
Question 3. Problem 14.3 In part c, compute the Lerner Index for each case.
Question 4. Problem 14.6 a-c
Questio
Econ 21
Prof. Doyle
Winter 2015
Problem Set 7: Profit Max and Equilibrium Models
Question 1. A firm faces a demand curve given by q = 100 2P . Marginal and average costs
for the firm are constrant at $10 per unit.
(a) What output should the firm produce t
Econ 21
Prof. Doyle
Winter 2015
Problem Set 6: Production and Costs
Question 1.
NS Problem 9.2.
Question 2.
NS Problem 9.4.
Question 3.
NS Problem 9.5 parts a-c.
Question 4.
NS Problem 9.7 parts a-b.
Question 5. Digging clams by hand in Sunset Bay require
Econ 21
Prof. Doyle
Problem Set 4: Uncertainty
Question 1.
NS Query 7.1 case 1
Question 2.
NS Query 7.2
Question 3.
NS Problem 7.1
Question 4.
NS Problem 7.2
Question 5.
NS Problem 7.3
Question 6.
NS Problem 7.4
Question 7.
NS Problem 7.5
Question 8. NS P
Econ 21
Prof. Doyle
Spring 2014
Problem Set 5: Game Theory
Question 1. Using the information found in Lecture 13, show that the optimal number of
sheep on the common is 60 (if you are a social planner who is maximizing total payoff in a
community)cfw_a nu
Econ 21
Prof. Doyle
Problem Set 2: Consumer Theory
Question 1. Chapter 3, Problem 1. Substituting using the implicit function theorem makes
these problems easier to solve.
Question 2. Chapter 3, Problem 3. Here, lets not focus on diminishing MRS again (se
Problem Set 4
Microeconomics: 33001
Professor Owen Zidar
1. Long Run Supply Curves
Explain whether the following statement is True or False. In the long run, supply will
be more elastic if cost structures are more heterogeneous across firms.
2. Hot Dog Pr
Problem Set 5
Microeconomics: 33001
Professor Owen Zidar
1. Present Discounted Value
Please give a numerical answer to each question. You may round off your answer to
two decimal points. Assume that the interest rate is r = 0.05 and that there is no
infla
Problem Set 3
Microeconomics: 33001
Professor Owen Zidar
1. Wine and Cheese
Louis has stable preferences (the same every year) and consumes two goods, wine and
cheese. In 1994, the price of wine was $4/glass and the price of cheese was $2/ounce.
Louiss in
Problem Set 1
Microeconomics: 33001
Professor Owen Zidar
1. Market for Bananas
Suppose that the supply of bananas can be represented by the following equation:
Qs = 2p + 2
Further suppose that the demand for bananas can be represented by the following
equ
.12 Slovenia 2013 World Economic Forum
T&T industry GDP growth forecast Absolute value
Percent of total (20132022) Note: For further
details and explanation, please refer to the section
How to Read the Country/Economy Profiles on
page 83. 2.1: Country/Eco
tourists . 4.2 .81 5.04 Comprehensiveness
of T&T data (0120)* . 107.0 .6 5.05
Timeliness of T&T data (018)* .
17.5 .7 6th pillar: Air transport
infrastructure. 2.8 . 76 6.01 Quality
of air transport infrastructure .
4.5 .72 6.02 Airline seat kms/week, dom
Econ 21
Prof. Doyle
Problem Set 3: Consumer Demand
Question 1.
NS Problem 4.10.
Question 2. Graphically, decompose the substitution and income effects of a price increase for
good x, where the good is a Giffen good. Make sure you label all parts carefully