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 procee
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 exa
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 n
Consumer Theory
1) Budget constraint
Choice set: px x+ p y y I
Budget line: px x+ p y y=I
px
Slope =
py
2) Preferences and utility
Preference relations
X > Y: consumer strictly prefers X over Y
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
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 mi
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 mi
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 o
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
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
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
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 qua
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,
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. I
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 n
Budget Constraint
1. Bundle: combination of two or more goods with certain restrictions
2. Choice set: set of bundles that satisfy the budget constraint that the total spending on
goods cannot exceed