Intermediate Microeconomics
Price and Costs Extra Question
1. Please fill in the following table. The only variable costs are labor hours. Please compute to
two decimal places.
Cost of labor
Cost of capital
Capital
Labor
10
1000
0
Marginal
Average
Total
F
EC 301
Madra
Problem Set 5
November 20, 2016
Due on December 1, 2016 (Thursday)
Remember: For = ! + , where a, b, and c are constants and y and x are variables,
!
= ! . Notice that c drops (cancels) because it has no impact on the change in y.
!
1. (Labor
EC 301
Madra
Problem Set 3
October 19, 2016
Due on October 27, 2016 (Thursday)
1. (Chapter 19) Prunella raises peaches. Where L is the number of units of labor she
uses and T is the number of units of land she uses, her output is
!
!
! !, ! = ! ! ! bushel
ECON 301
MADRA
PROBLEM SET 1
Due on Tuesday Sept. 20, 2016 (In class)
(Please use squared paper. Neatness appreciated.)
1. Suppose the demand curve is D(p)= 200-5p. Graph your demand curve. What
price would the monopolist set if he had 150 apartments? Wha
ECON 301
MADRA
PROBLEM SET 2
Due on Thursday October 4, 2016 (In class)
(Please use squared paper. Neatness appreciated.)
1. Calculate the Marginal Utilities and Marginal Rate of Substitution for each of
the Utility functions below.
a. 2x1+3x2
b. 4x1+6x2
EC 301
Madra
Problem Set 4
October 27, 2016
Due on November 8, 2016 (Tuesday)
Remember: For ! = !" ! + !, where a, b, and c are constants and y and x are variables,
!
= !"! ! . Notice that c drops (cancels) because it has no impact on the change in y.
!
1
Chipo Mashiatshidi
An Assessment of the Electric Vehicle Market in the United States and its Global Imprint
It is widely agreed upon that climate change is becoming a powerful concern amongst a
vast amount of nations. Along with the new concerns of clim
ll
a
c
Re
Level of
Measurement
Scale
Ordinal
(many categories)
Dichotomous
Nominal
(or ordinal with
few categories)
Scale
Ordinal
(many categories)
scatterplot,
scatterplot,
Pearsons
Spearman
Dichotomous
Nominal
(or ordinal with
few categories)
compare me
Drew University | Department of Economics
ECON 301 | INTERMEDIATE MICROECONOMIC THEORY | Fall 2016
INSTRUCTOR: Dr. Yahya M. Madra
OFFICE: 202 Lewis House
EMAIL: [email protected]
OFFICE PHONE: Ext. 3289
CLASS MEETS
SECTION 301D 10476 | Tuesdays and Thursday
Average Product of Labor Quantity/Labor
Short Run Average Total Cost FC+VC/Q
Marginal Product of Capital- Q/ K
Marginal Product of Labor- Q/ L
Optimal Capital/ Labor Mix- MPL/MPK=w/r
Shut-Down Condition- P=MC<AVC
Long Run Average Variable Cost- rK optimal
Normative Theory |Completeness- We can rank all possible outcomes of goods and services (There are multiple
indifference curves) x f y; x, y X |Transitivity- Were consistent in our preferences (Indifference curves cannot
intercept) If x ff y and y z then
Endowment NBundle- What
you get today and tomorrow (living paycheck
to paycheck)
t
N
N
Expected
Expected Value- E X
Future Value- FV ( M 1 : t , r ) M 1 1 r
p u(M ); p 1
X
p
E U (M )Utility i i
i
i
i
i1
i 1
i1
Intertemporal Rate of Substitution- Slope
What happens to the demand for a good when the price changes?
Would you buy more or fewer apples if the price goes up?
What if you grew apples?
What if your wage went from
$10 to $100
Would you work more or less?
Substitution effect
+
Income effect
=
Tota
The Slutsky Equation
or
The Fundamental
Equation of the
Theory of Value
Eugene Slutsky 1880 1948
Sulla teoria del bilancio del consumatore (1915)
Sir John R. Hicks, 1904-1989
Value and Capital (1939)
Why is this so important?
1. It describes the key predi