Economics 50
Stanford University
Abramitzky
Fall 2012
Problem Set 8
(due in section Friday, November 30)
1. There are 100 firms in a perfectly competitive industry, each with the total cost
function: TC= 36+8q +q 2 .
A. Calculate the equations for Average
Economics 50
Stanford University
Abramitzky
Fall 2012
Problem Set 3
(due in section Friday, October 19)
1. B&B (Besanko and Braeutigam), 2nd edition page 180, #5.7 (3rd edition page 182,
#5.7; 4th edition page 196, #5.8)
a
a
y :
2. Consider a utility func
Economics 50
Stanford University
Abramitzky
Fall 2012
Problem Set 2
(due in section Friday, October 12)
1. B&B, 2nd edition: page 400, #10.12 (3rd edition: page 407 #10.13, 4th edition: page
433 #10.17).
2. Consider the following demand and supply system:
Economics 50
Stanford University
Abramitzky
Fall 2012
Problem Set 1
(due in section Friday, October 5)
1. B&B (Besanko and Braeutigam), 2nd edition: page 19 #1.5 (3rd edition: page 19
#1.9; 4th edition: page 22 #1.12). Add:
D. Calculate the price elastici
Economics 50
Stanford University
Abramitzky
Fall 2012
Problem Set 7
(due in section Friday, November 16)
1. A firm has a production function given by the following table:
UNITS of LABOR
1
2
3
4
3
8
12
15
10
15
19
22
16
21
25
28
20
25
28
30
K=1
K=2
K=3
K=4
Extended office hours before the final
THIS IS OUR LAST CLASS
Lecture 18, Wednesday, December 5
250
ECON50 Review The Big Picture
DEMAND (Chapters 35):
We showed that Demand (D) is the result of
consumers maximizing utility under a budget
constraint
251
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LAST CLASS
Supply/demand shocks have different effect
on market equilibrium P, Q depending on
elasticity of demand/supply
TODAY
Elasticities
Problem Set 1 due Friday in Sections
Lecture 2, Monday, October 1
22
X
EX D ,P
23
Measures the responsiveness of q
Lecture 13, Monday, November 2
 PS7 Due Friday
Last Class: (chapter 6)
 All About Costs . .
 How Does the Firm Select Inputs (K,L) to Produce a
Given Output at Minimum Cost in the Long Run?
 Long Run: Firm can Vary K,L.
Today: (chapter 6)
 Long Run (
PS9 (last PS!) Due Friday
Extended Office Hours Before Final
Friday in Section
Review section (solving old exam questions)

Lecture 17, Monday, December 3
250
Last Class: (chapter 9)
Profit max. in (SR) and (LR):
1. Individual Firm (SR) Supply Curve
2. M
Economics 50
Stanford University
Abramitzky
Fall 2012
Problem Set 9
(due in section Friday, December 7)
D
1. An industry faces a demand schedule of the form: Q =475( 1/3) P . Initially,
the market is competitive with an industry supply curve of the form:
Economics 50
Stanford University
Fall Quarter 2014
Homework 7
Due at the beginning of your section on Friday, November 21, 2014
For extra practice, take a look at more problems from the end of chapter 9 in the textbook.
Problem 1: Profits and surpluses.
B
Economics 50 Stanford University Autumn Quarter 2014
Homework 5
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Economics 50 , Stanford University Fall Quarter 2014
\
Homework 4
Practice Problem 1: Revealing data
(a)
To use revealed preference, you need to know when a bundle is inside the budget set at
what prices. To do so, we compare the cost of a bundle at a set
Economics 50 Stanford University Fall Quarter 2014
Homework 3
Practice Problem I: Beg, borrow, or steel?
The ntiiity imam implies that stream = (:2 ,4 C;. At point a, seesaw m m e}:
winch iies between (l i 12,) '2 1.03 and (1 + r3) 3 1.32. Therefore Meg w
Econ 50
Fall 2014
Lecture 2: September 25, 2014
Some reminders:
No sec=ons tomorrow
Homework 1 (due October 3) will be posted by
this weekend
Sign up for a sec=on in Coursework, if you
havent yet
Sign up
Economics 50' Stanford University _ Fall Quarter 2014
Homework 6
Practice Problem 1: What does this reveal?
a) We are given that the production function is Q = 2KL+K and the exogenous variables
are w = 4, r = 5, and Q = 45. We are also told that K = 9. So
Econ 50
Fall 2014
Lecture 1: September 23, 2014
Welcome to Econ 50!
Make sure you have a syllabus (and read it
through!) and an informaHon sheet
Bring your clickers on Thursday
SecHon signups are now open
Economics 50 Stanford University Autumn Quarter 2014
Homework 1
Practice Problem 1: Pick your target(s).
.(a) The objective function is the number of new SUVs sold; which wécan write as C(F, G).
(b) The constraint is that total spending must not exceed $
Solutions for Problem Set 5
ECON 50 Fall 2014
November 4, 2014
Q1 (a) To maximize average product (ie the production function Q divided by L), we are
solving the problem:
max 6L L2
L
Taking the rst order condition, we have:
6 2L = 0
Solving, we have L = 3
Solutions for Problem Set 1
ECON 50 Fall 2014
October 1, 2014
PROBLEM 1 Since supply of aluminum decreases when the price of electricity increases, when the
price of electricity decreases the supply of aluminum increases. In 2004, we are told
that nationa
Strictly (increasingly) Monotonic: MUX, MUY > 0
Weakly (increasing) Monotonic: MUX 0, MUY 0
Strictly Convex: monotonicity plus as X , MRS
diminishes
Weakly Convex: monotonicity plus as X , MRS
diminishes or =
Comment on Monotonicity and Convexity
 PS#3 d
Lecture 8: Analyzing a Price Change, Part II
Econ 50  Stanford University  Autumn Quarter 2016
Thursday, October 20
1
Slutsky and Hicks Decompositions
Consider the utility function u(x1 , x2 ) = x1 x22 . Suppose m = 72 and p2 = 2. Lets analyze a price i
Homework 4
Econ 50  Stanford University  Autumn Quarter 2016
Due at the beginning of section on Friday, November 4
Exercise 1: How elastic are those sweatpants? (Lecture 9)
This was a midterm question in 2015.
Suppose the market demand for sweatpants (g
Homework 5
Econ 50  Stanford University  Autumn Quarter 2016
Due at the beginning of section on Friday, November 11
Note: You may use a graphing program like Excel or desmos.com to create the graphs for this assignment;
you do not need to draw them by h
Lecture 7: Analyzing a Price Change, Part I
Econ 50  Stanford University  Autumn Quarter 2016
Tuesday, October 18
1
Deriving Price and Income Offer Curve
1.1
Review: Demand Functions
1. Demand for weak substitutes
From section, recall that the weak subs
Homework 3
Econ 50  Stanford University  Autumn Quarter 2016
Due at the beginning of lecture on Tuesday, October 25
Note: this problem set is designed to help you study for next Thursdays midterm. It also covers 3 lectures
of material. Its therefore a b