C H A P T E R
1
An Overview of the Study Guide and
Chapter 1
Study guides that accompany textbooks are usually written as an afterthought by
someone who has little connection to the textbook that is supposed to be supported by the study guide. I think it

SAMPLE MIDTERM II
Please note that you are responsible for all questions covered in lectures,
online quizzes 5&6, in-class exercises 3,4&5, recitation sessions, and the
second problem set. Make sure to review the additional practice problems
provided in t

Example covered in class on April 22
Consider a market demand given by D(p) = 240
3p . The supply side
of this market could be structured in many ways.
Assume zero xed costs throughout.
1) Suppose it is a perfectly competitive market with identical rms, e

RECITATION PROBLEM SET
4.24.2015
MONOPOLY NONUNIFORM PRICING
Q.1. Determine the Cournot equilibrium with n identical rms and a
linear demand curve p(Q) = a
bQ. Suppose that each has a constant
marginal cost equal to c and no xed cost. How do the quantity

PROBLEM SET 3
Due on 4.29.2015
Description: This problem set consists of 5 questions and is worth 50
points.
Instructions: Each homework needs to be handwritten and submitted in
class. You can collaborate with your classmates but make sure to write down
t

RECITATION PROBLEM SET #5
3.20.2015
DERIVATION OF COST FUNCTIONS AND FIRM SUPPLY
Q.1
p
Consider a rm with the technology f (K; L) = K L.
(1) Fill in the blank. The production displays .
returns to scale.
Suppose the capital is xed at 4 in the short-run. T

INTERMEDIATE MICROECONOMICS
MIDTERM I ANSWER KEY
Instructions: This is a closed book exam, and there are no electronic
devices allowed. Use the space provided below each question for your answers
Let me know if you need additional paper. Make sure to writ

PREPARATORY MATERIAL FOR MIDTERM II
Friday 10:30-11:50
Please note that you are responsible for all questions covered in lectures,
online quizzes 5&6, in-class exercises 3,4&5, recitation sessions, and the
second problem set.
Q.1. Consider a rm with an av

PROBLEM SET 2
Due on 3.25. 2015
Description: This problem set consists of 5 questions and is worth 50 points.
Instructions: Each homework needs to be handwritten and submitted in
class. You can collaborate with your classmates but make sure to write down

73-230 INTERMEDIATE MICROECONOMICS
MIDTERM II ANSWER KEY
Instructions: This is a closed book exam, and there are no electronic
devices allowed. Use the space provided below each question for your answers
Let me know if you need additional paper. Make sure

Intermediate Microeconomics: Market
Failure
April 1, 2015
Non-uniform Pricing
I
Why do students pay less for tickets to enter museums, movie
theaters, entertainment parks, aquariums, . etc. ?
Non-uniform Pricing
I
Why do students pay less for tickets to e

73-230 Carnegie Mellon University
Antonio Miralles, Spring 2016
Syllabus: Intermediate Microeconomics
Time:
Lecture 1: Mondays and Wednesdays, 9:00-10:20AM
Lecture 2: Mondays and Wednesdays, 10:30-11:50AM
Location: Posner Mellon Auditorium
Professor: Dr.

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EXERCISE LIST FOR MIDTERM 2
Chapter 5 Textbook
Exercises 1 and 6
Chapter 8 Textbook
Exercises 1 and 3
Chapter 9 Textbook
Exercises 1 and 4
Chapter 10 Textbook
Exercises 4 and 5
Additional Exercise
A rm produces an output y with two inputs K and L whose un

EXERCISE LIST FOR MIDTERM 1
Chapter 2 Textbook
Exercises 1, 3, 4 and 5
Chapter 3 Textbook
Exercises 1, 2 and 4
Chapter 4 Textbook
Exercises 3, 4 and 5
Additional Exercise
In a world with two goods x and y, Andrew has the utility function UA (x; y) =
xy ;

Price Changes
We have seen how consumers nd optimal bundles
We now ask how the consumer reacts to changes in the
environment
In particular, we want to understand how a consumer reacts to
price changes
First we are going to look at pictures of consumer rea

Intermediate Microeconomics: 73-230
January 2016
About Me
I
I
I
BSc Universitat de Barcelona, MSc University College London
PhD, Boston University
My research:
1.
2.
3.
4.
Microeconomic Theory
Game Theory
Mechanism Design
Market Design
Thinking with Econo

Intermediate Microeconomics: Math
Overview
January 10, 2016
Recommended Reading
I
I
I
I
I
I
We are going to try and give you a quick taster of multi variate
calculus.
The best reference we know of is Pemberton and Rau
"Mathematics for economists: an intro

Intermediate Microeconomics: Market
Failure
March 25, 2015
Monopoly
I
Monopoly: A single firm that supplies the whole market.
I
This occurs when:
1.
2.
3.
4.
5.
Exclusive control of inputs
Economies of Scale (downward sloping LAC)
Patents
Networks
Governm

1. True: In perfectly competitively markets, the total revenue of a rm
increases linearly with output.
T R(q) = R(q) = pq. A perfectly competitive rm is a price taker so p is a
constant (That is, pq is like any function ax)
2. False: In the short-run, a r

Intermediate Microeconomics:
Oligopoly
April 13, 2015
Oligopoly
I
Much of the world lies between monopoly (price setter) and
perfect competition (price taker).
I
The market structure with few competitors and substantial
barriers to entry is called Oligopo

Information
Intermediate Microeconomics:
Information
January 31, 2014
!
So far we have assumed that individuals have all the information
necessary to make decisions
!
However, reality is that people have dierent information sets
!
We are going to look at

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Information
Intermediate Microeconomics:
Information
January 31, 2014
!
So far we have assumed that individuals have all the information
necessary to make decisions
!
However, reality is that people have dierent information sets
!
We are going to look at

Online Quiz 3
1.Je realized that in comparison to a few months earlier, he now spends
more on milk. Which of the following cannot explain this change?
The statement "there is no substitute for milk," does not explain the
change, it must have always been t

Online Quiz 2
1. Indierence curves cannot be upward sloping because more-is-better.
The more northeast you move, the more of each good each consumption
bundle contains.
2. Jill is planning her summer trip and has 4 destinations in mind:
Norway, Kenya, Chi

Q.1) A Stackelberg leader makes a higher prot than his follower because
the leader can charge more per unit of his output than the follower.
False, the leader produces more at the same price.
Q.2) Consider 4 identical rms which face the same market demand

Online Quiz 7
1. True or False: For a monopolist, marginal revenue is less than price
as long as the demand curve is not perfectly elastic.
True. The demand faced by a monopolist is the market demand curve.
As long as demand is downward sloping, i.e., not

Online Quiz 9
1. Consider a Cournot duopoly with identical rms and a market demand that is given by D(p)=36-2p. Both rms have a constant marginal
cost of 3. How many units of output would rm 1 produce if it expects rm
2 to produce 8 units?
Because rms com