Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
MIDTERM EXAMINATION #1
Instructions: This is a closed book and closed notes exam. You may use a calculator if you
wish. However, no calculator is needed to answer the questions. There are three question
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
TOPICS COVERED IN MIDTERM EXAMINATION #2
Please notice: In general, you are required to know the material that has been covered in class
for the midterm exam of April 9. Sometimes the textbook has more
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
TOPICS COVERED IN MIDTERM EXAMINATION #1
Please notice: In general, you are required to know the material that has been covered in class
for the midterm exam of February 19. Sometimes the textbook has m
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
Suggested Answers to Practice Exam #3
Part III
Exercise #1. The monopolist maximizes
= p (y ) y c (y )
with respect to y . The optimal choice of output is such that
MR(y ) = MC (y ),
where
d [p (y ) y
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
Suggested Answers to Practice Exercises for Exam #2
Exercise #1. (a) To show that the technology displays increasing returns to scale, multiply
all inputs by a number t > 1:
1
1
(tK ) (tL) 2
1,000
1 1
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
Suggested Answers to Practice Exam #1
Please nd all graphs at the end of this document.
Exercise #1. (a) Andys budget line is
x1 + x2 = 400.
Andys preferences are Cobb-Douglas. The marginal rate of subs
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
Suggested Answers for the Final Exam
Exercise #1. In the short-run the number of rms is constant at 84. The supply function of
each rm is found by setting p = M C (y ), and taking into account the possi
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
Suggested answers to Midterm Examination #2
Please refer to the end of this document for all graphs.
Exercise #1. (a) The equilibrium price and quantity can be found by setting quantity supplied
equal t
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
Answers to midterm examination #1
Please refer to the end of this document for all graphs.
Exercise #1. (a) For this question you could have proceeded in dierent ways:
One way. Maximize a Cobb-Douglas u
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
Practice Exam #3
As indicated on the course syllabus, this practice exam will be discussed during your recitation
section on Friday, May 4. The exam will be on May 10. You wont be allowed to use any boo
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
Practice Exercises for Exam #2
As indicated on the course syllabus, this practice exam will be discussed during your recitation
section on Friday, April 6. In the second midterm exam of Monday, April 9
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
Practice Exam #1
As indicated on the course syllabus, this practice exam will be discussed during your recitation
section on Friday, February 16. In the rst midterm exam of Monday, February 19 you shoul
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
MIDTERM EXAMINATION #2
Instructions: This is a closed book and closed notes exam. You may use a calculator if you
wish. However, no calculator is needed to answer the questions. There are three question
Econ 73-250A-F
Spring 2001
Prof. Daniele Coen-Pirani
TOPICS COVERED IN FINAL EXAMINATION
Please notice: The nal exam is comprehensive. Sometimes the textbook has more than what I
have said in class on a given topic, sometimes it is the other way around. I