Firms and Markets
Assignments
!
Problem Set 1 (Solutions)
(1)
Demand and Supply basics
For each of the following, use a supply and demand diagram to deduce the impact of the
event on the stated market
Basic Differentiation Formulas
In the table below,
and
Derivative of a constant
Derivative of constant
multiple
Derivative of sum or
difference
(
)
(
represent differentiable functions of
We could als
Problem Set 4 (Competition and Cooperation)
(1) The Giant Corporation
You are a small firm in a market which is dominated by Giant Corp. which has 75% of the market.
Your current challenge: to decide
Firms and Markets
Assignments
!
Problem Set 0: Math Review Questions
(1) Linear equations
Solve the following system of linear equations:
x = 10 2 y
y=x+4
Answer:
Substituting the second expression in
Firms and Markets
Assignments
!
Problem Set 2 (pricing)
(1) MelCos Xamoff
The global pharmaceuticals giant, MelCo, has had great success with Xamoff, and over-thecounter medicine that reduces exam-rel
In this document, I will provide a basic overview of a perpetuity and an annuity.
Perpetuity
You are going to receive k dollars every year starting one year from now, forever. The question
we want to
Firms & Markets, Fall 2015
Syllabus, Outline, and Calendar
COR1-GB.1303, Firms and Markets
Prof. Lawrence J. White
Fall 2015
Office: KMEC 7-65
Class sessions: T/Th 9:00-10:20am, KMEC 2-70 (Block 4)
21
Firms & Markets (Fall 2015)
Syllabus Supplement Blocks 2&4
Correspondence of pages in 7th edition Baye textbook with the class schedule for fall 2014
Days
Relevant pages in Baye 7th edn.
Thurs Sept 3
Firms & Markets (Fall 2015)
Assignments (Blocks 2&4)
Homework Assignment #1
A. Math review:
1. Linear equations: Solve the following system of linear equations:
x = 10 2 y
y=x+4
2. Quadratic equations
Firms & Markets
Blocks 2 & 4
Fall 2015
Lawrence J. White
Review: Basic demand & supply
September 8
1
Overview
Demand
Including elasticities
Supply
Including elasticities
Equilibrium
Changes
in e
Firms & Markets (Fall 2015)
LJW Class Notes Sept 3
Introduction; key concepts
Major themes:
- The assumption of maximizing, more, for individuals and for enterprises
- Equilibrium in markets and trans
Firms and Markets
Competitive Markets Review
Professor Christopher A. Neilson
Summer 2015
Outline
Perfect competition
Assumptions?
Dynamics: short-run and long-run analysis
Competitive market equil
Firms and Markets
Introduction
Professor Christopher Neilson
Summer 2015
Christopher Neilson
Background:
PhD in Economics, Yale University
Undergrad and Business/Economics at University of Chile
3 ye
Firms and Markets
Price Competition
Professor Christopher A. Neilson
Summer 2015
An experiment
Two firms sell an identical product
Cost of product is $5
There is a single buyer in the market:
Will
Firms and Markets
Costs
Professor Christopher A. Neilson
Summer 2015
The supply curve
Supply curve: a representation of the relationship between the price of
a good and the quantity supplied.
Price
Firms and Markets
Monopoly Pricing
Professor Christopher A. Neilson
Summer 2015
Overview
Context:
Market power means firms face a tradeoff between price and quantity:
to sell more, they must charge
Firms and Markets
Cooperation
Professor Christopher A. Neilson
Summer 2015
Electric turbine generators
1950s: three producers of large electric turbine generators in the US
General Electric, Westing
Firms and Markets
Asymmetric Information
Professor Christopher A. Neilson
Summer 2015
Overview
Context: You want to reward good performance by a subordinate, but
he has a better idea of what that per
Firms and Markets
Consumer Demand
Professor Christopher A. Neilson
Summer 2015
Overview
Questions:
Where does the demand curve come from?
How sensitive is demand to price?
How important is the pri
Firms and Markets
Game Theory
Professor Christopher A. Neilson
Summer 2015
Overview
Context: strategic decision making
Suppose youre in an industry with just a few competitors and are
considering cu
Firms and Markets
Supply and Demand
Professor Christopher A. Neilson
Summer 2015
Overview
Questions:
How are market prices determined?
What drives changes in market price?
Concepts:
Demand curve
S
Firms and Markets
Consumer Demand Elasticity
Professor Christopher A. Neilson
Summer 2015
Demand elasticity
How sensitive is demand to price, consumer income, or the prices of
competing products?
If