CHAPTER 2 REVIEW PROBLEMS:
1. Use supply and demand curves to illustrate how each of the following events would
affect the price of butter and the quantity of butter bought and sold:
Concepts: Supply and Demand Shifters.
In each of the cases, start with t
Chapter 9 The Analysis of Competitive Markets
5. Refer to Figure 9.1. If the market is in equilibrium, total producer surplus is
6. Refer to Figure 9.1.
If the market is in equilibrium, total consumer and produc
Chapter 7 The Cost of Production
1. Which of the following statements is true regarding the differences between economic and accounting costs?
Accounting costs include all implicit and explicit costs.
Economic costs include implied costs only.
Review Problems Chapter 1:
1. Suppose the price of regular-octane gasoline were 20 cents per
gallon higher in New Jersey than in Oklahoma. Do you think there
would be an opportunity for arbitrage (i.e., that firms could buy gas
in Oklahoma and then sell i
CHAPTER 3 REVIEW PROBLEMS:
1. Draw indifference curves that represent the following individuals preferences for
hamburgers and soft drinks. Indicate the direction in which the individuals satisfaction
(or utility) is increasing.
Concepts: Applications of
Intermediate Microeconomics 301
Problem Set # 3 - Solution
Due Wednesday July 13, 2005
1. Each extra worker produces an extra unit of output up to six workers. After six, no
additional output is produced. Draw the total product of labor, average product o
CHAPTER 5 REVIEW PROBLEMS:
1. George has $5000 to invest in a mutual fund. The expected return on mutual fund A is
15% and the expected return on mutual fund B is 10%. Should George pick mutual fund A
or fund B?
Concepts: Risk Preferences and measures of
Chapter 8 Profit Maximization and Competitive Supply
1. Which of following is a key assumption of a perfectly competitive market?
Firms can influence market price
Commodities have few sellers
It is difficult for new sellers to enter the market