HW 5:
1. In a perfectly competitive market, the market demand and market supply curves
are given by Qd = 1000 10Pd and Qd = 30Ps. Suppose the government provides a
subsidy of $20 per unit to all sellers in the market.
Find the equilibrium quantity demande
Fayaz Lalani
Business Law 201
Orkin
1. (a) Being a quality assurance manager of Vandalay Latex, George Costanza was
promised $500 for his work ethic by the owner of the company. Art Vandalay, sole owner
of Vandalay Latex said on May 1st 2010: George, you
Exam 1 Answer Key:
1.
a)
Yes, the more is better assumption is satisfied for both goods since both
marginal utilities are always positive.
b)
c)
The marginal utility of x remains constant at 3 for all values of x.
MRS x , y = 3
d)
The MRS x , y remains co
Homework3Answers
Problem 1
Note that in this game tree Firm 1 chooses to move first and then Firms 2 and 3 play a simultaneous
game.
Find the subgame perfect Nash equilibrium to this game.
First we must find the Nash equilibrium of the subgame played betw
Fayaz Lalani
Business Law 201
Neal Orkin
Ethics Assignment
Being the CFO of Jackson-Miller Company, a company that produces asbestos, I
am well aware of the damages that can be caused to the company. The company will be
in great danger knowing that lawsui
INTB 334
Drexel University
Yoto Yotov
Article Analysis # 2
Price Gap Puts Spice in Sugar-Quota Fight
The Wall Street Journal, March 15, 2010, by Carolyn Cui
This is the second part of the extra-credit assignments for INTB 334. Satisfactory completion of
b
Econ 301, Spring 2013 Problem Set 4
(Due May 16 by 4 pm)
1. The production function Q = KL + M has marginal products MPK = L, MPL = K, and MPM = 1.
The input prices of K, L, and M are 4, 16, and 1, respectively. The firm is operating in the short
run, wit
Practice for Midterm 1
1. Consider the utility function U(x, y) = xy. The marginal utilities are MUx = y/(2x)
and MUy = x/(2y).
a) Is the assumption that more is better satisfied for both goods?
b) Does the marginal utility of x diminish, remain constant,
Solution to Problem Set 1, Econ 301, Spring 2013
1. We are given that Y = 40, and PA = 100, and so substituting these values into the
equation that determines the quantity demanded gives us
QS = 100 2PS + 0.5(40) + 0.2(100)
or
QS = 140 2PS.
This is the eq
Practice Questions for Midterm 2
1. You might think that when a production function has a diminishing marginal rate of
technical substitution of labor for capital, it cannot have increasing marginal products of
capital and labor. Show that this is not tru
Answer Key to HW 6:
1. Suppose a monopolist producing Q units of output faces the demand curve P = 20
- Q. Its total cost when producing Q units of output is TC = F + Q2, where F is a
fixed cost. The marginal cost is MC = 2Q.
a) For what values of F can a
Homework #2 (due May 15th)
Problem 1
In each of the three games shown below, let p be the probability that player 1 plays cooperates
(and 1- p the probability that player 1 defects), and let q be the probability that Player 2 plays
cooperates (and 1- q th
Homework 1 (due April 24th)
Problem 1
Consider the following game of divide a dollar. There is a dollar to be split between two
players. Player 1 makes an offer (an offer by Player 1 specifies how much he would like Player 2
to have). Without observing Pl
DREXEL UNIVERSITY
Department of Economics and International Business
INTB 334
International Trade, 4 credits
Spring 2013
SYLLABUS
Instructor:
Yoto V. Yotov
Oce:
Science Center, 3600 Market Street, 7th Floor
Oce Hours: 12:00pm-1:00pm on Tuesday, and by App
Econ 301 Microeconomics
Lecture 1. Analyzing Economic Problems
Professor Mian Dai
Spring, 2013
A road map for todays lecture
What are the key themes of microeconomics?
What are the key analytical tools?
Constrained Optimization
Equilibrium Analysis
C
Econ 301 Microeconomics
Lecture 2. Demand, Supply and Equilibrium Analysis
Professor Mian Dai
Spring, 2013
A road map for todays lecture
What are supply and demand?
What is elasticity? How it is related to the shape of
supply and demand curve?
Math Ref
Econ 301 Microeconomics
Lecture 3. Preference and Utility
Professor Mian Dai
Spring, 2013
A road map for todays lecture
Preferences
Three axiom of preferences.
Utility: the representation of preference
Marginal Utility
Marginal Rate of Substitution
Solution to Problem Set 3, Econ 301, Spring 2013
1. Because these isoquants are convex to the origin they do exhibit diminishing marginal rate of
technical substitution.
2. To determine the nature of returns to scale, increase all inputs by some factor an
Econ 301 Microeconomics
Lecture 10. Perfectly Competitive Markets
Professor Mian Dai
Spring, 2013
Outline
What is perfect competitive market?
What is profit maximization quantity?
What is long run and short run supply curve for a
competitive firm?
How
Econ 301 Microeconomics
Lecture 11. Perfectly Competitive Markets Applications
Professor Mian Dai
Spring, 2013
Outline
Competitive market is efficient.
Application: effect of exercise tax.
Application: effect of subsidy
Application: effect of price ce
Homework 3:
1. Suppose the production function is given by the equation Q = LK. Consider the isoquants
corresponding to Q = 10, Q = 20, and Q = 50. Do these isoquants exhibit diminishing marginal
rate of technical substitution?
2. A firm produces a quanti
Econ 301 Microeconomics
Lecture 9. Cost Curves
Professor Mian Dai
Spring, 2013
A road map for todays lecture
Total cost function
Derived from cost minimization inputs
Comparative Statics
Economy of scale, diseconomy of scale, MES.
What is MC and AC?
Econ 301 Microeconomics
Lecture 8. Production and cost minimization
Professor Mian Dai
Spring, 2013
A road map for todays lecture
Cost minimization problem
Interior and corner solution
Comparative statics: Input demand
Short run vs. long run
Cost mini
Econ 301 Microeconomics
Lecture 7. Inputs and production functions
Professor Mian Dai
Spring, 2013
A road map for todays lecture
What is production function
Margin product, average product isoquants, marginal rate of
technical substitution
What is retu
Econ 301 Microeconomics
Lecture 6. Theory of Demand-cond
Professor Mian Dai
Spring, 2013
A road map for todays lecture
Recap: How price changes affect demand
Substitution vs. Income effect
Application: CPI
How price affect consumer welfare
Compensati
Econ 301
Microeconomics
Spring Quarter 2012 Syllabus
Tuesday and Thursday 4:00 -5:50 pm, Pearl 303
Professor Mian Dai
Department of Economics and International Business
LeBow College of Business
Office: 3600 Market 7th Floor
(215) 895-2536
E-mail: [email protected]
Econ 301 Microeconomics
Lecture 5. Theory of Demand
Professor Mian Dai
Spring, 2013
A road map for todays lecture
How to derive demand from optimal choice.
How income and prices affect demand
Substitution vs. Income effect
(a) Indifference Curves and B
Econ 301, Spring 2013 Problem Set 1
(Due April 18 by 4 pm)
1. Suppose that the quantity of steel demanded in France is given by
Qs = 100 2 Ps + 0.5Y + 0.2 PA , where Qs is the quantity of steel demanded per year, Ps is the
market price of steel, Y is real
Final Exam Practice:
1. Consider a market in which the market demand curve is given by P = 18 - X - Y, where
X is Firm 1s output, and Y is Firm 2s output. Firm 1 has a marginal cost of 3, while
Firm 2 has a marginal cost of 6.
a) Find the Cournot equilibr