ECON 3070 section 2
HW 4
Suggested solutions
April 5, 2007
Problem 1 Firm Jimba produces candy and its variable cost (in thousand
dollars) is V C (q) = 2q3 , where q is a ton of candy. Assume, in addition,
there is a xed (sunk) cost of one thousand dollar
ECON 3070-002
INTERMEDIATE MICROECONOMIC
THEORY
Suggested Solutions to Homework 3
Carefully show how you derive you answer and be sure to interpret your
answer where necessary.
1. Jasons preferences over peanuts (y) and almonds (x) are given by
U (x, y) =
ECON 3070-002
INTERMEDIATE MICROECONOMIC
THEORY
Spring 2007, Homework 3
Due Thursday March 1 (prior to
commencement of lecture)
Carefully show how you derive you answer and be sure to interpret your
answer where necessary.
1. Jasons preferences over peanu
ECON 3070 section 2
HW 5
Solutions
April 13, 2007
Problem 1 Suppose Adam and Eve are the only individuals in the economy
(a small island). Adam brings 6 pheasants (x) and Eve brings 6 buckets of
apples (y) to the evening re. Their preferences are represen
ECON 3070 section 2
HW 6
Solutions
May 2, 2007
Problem 1 a. 13.14, p. 517. Use the information about cobalt industry
from this problem to answer additional questions.
b. Assume there are only two rms competing against each other in
Cournot fashion. Comput
ECON 3070 INTERMEDIATE MICROECONOMIC THEORY
Homework 2 solution
Q1.
(2C + 2) + 2C
4C
C
= 22
= 20
= 5
Plugging this result back into the tangency condition implies that F = 2(5)+
2 = 12. At the optimum the consumer chooses 5 units of clothing and 12 units
Question 4
When R = 2 and T = 10, Qd (P ) = 70 2P and Qs (P ) = 14 + 5P.
(a) Set Qd (P ) = Qs (P ) to get 702P = 14+5P , Solution is: P = 12,
so Q = 46; this is equilibrium.
P
(b) Price elasticity of demand is = Qd0 (P ) Q = 2 12 = 12 . Price
46
23
P
elas
Econ 3070-002 Intermediate Microeconomic
Theory
Final Exam
Spring 2006
Time: 2.5 hr
30 percent of overall grade. Please prove and
interpret your answers
May 2, 2006
NAME:
Signature
DATE:
Honor code. On my honor, as a University of Colorado at Boulder stud
Econ 3070 Returns to scale and Marginal Cost
March 13, 2007
Example 1 F (L, K) = min cfw_L, K . Optimal input combination to produce Q units of output: .L = K = Q. Cost function: wL + rK = Q (w + r) = C (Q) . Marginal cost is constant, M C (Q) = w + r > 0
ECON 3070-002
INTERMEDIATE MICROECONOMIC
THEORY
Spring 2007, Homework 2
Due Thursday February 15 (prior to
commencement of lecture)
Carefully show how you derive you answer and be sure to interpret your
answer where necessary.
1. Solve problem 3.2 (Besank