Problem Set 1
1. Boy and Girl allocate their consumption between two goods: hats and bats. The price of hats is $4 each and the price of bats is $8 each. Boy's marginal utility of the last hat consumed is 8 and his marginal utility of the last bat is 24.
Intermediate Microeconomics
Problem Set #7.5
Optional Extra Credit Assignment
1. In an alternate reality where they are not shot and killed, Bonnie and Clyde have been taken into
custody by the authorities. They are both given the option to confess to the
Intermediate Microeconomics
Problem Set #7.5
Optional Extra Credit Assignment
1. In an alternate reality where they are not shot and killed, Bonnie and Clyde have been taken into
custody by the authorities. They are both given the option to confess to the
Problem set 9 1. Consider the lemons model with variable quality discussed in class. Quality of sellers is
denoted by v, and the buyer is willing to pay a price equal to the average quality of a car. The buyer does not know the quality of the car he buys:
Intermediate Microeconomics
Problem Set #3
1. By studying, Wendy can produce a higher grade, G, on an upcoming economics exam. Her (CobbDouglas) production function for G depends on the number of hours she studies calculus problems,
C , and the number of
ECON 1100: Intermediate Microeconomics Instructor: Sandra Orozco Homework 3 Due date: October 6, 2010 IMPORTANT NOTE: Do not forget to label your graphs properly! 1. (10 points) Suppose the production of airframes is characterized by a Cobb Douglas produc
Intermediate Microeconomics
Problem Set #2
1. The supermarket cashier asks Candace to give a dollar to support cancer research. Suppose Candaces utility function is specied as follows: U (X, c) = X + c where X is the number of dollars she
has to spend on
Intermediate Microeconomics
Problem Set #1
1. Homer and Barney subsist solely on the consumption of two good: beer and donuts. The price of
beer is $4 each and the price of donuts is $1 each. The marginal utility Homer received from the last
beer he consu
Intermediate Microeconomics
Midterm #1
1
2
1. (25 points total) Suppose an individuals utility function is given by U (x, y ) = x 3 (y 6) 3 , where we interpret 6
as the minimum quantity of good y that the individual must consume to remain alive and well.
ECON 1100: Intermediate Microeconomics Instructor: Sandra Orozco Homework 2 Due date: September 20th, 2010 IMPORTANT NOTE: Do not forget to label your graph properly! 1. The utility that Ann receives by consuming food F and clothing C is given by U( F, C)
ECON 1100: Intermediate Microeconomics Instructor: Sandra Orozco Homework 1 Due date: September 13th, 2010 IMPORTANT NOTE: Do not forget to label your graphs properly! 1. The demand for beer in Japan is given by the following equation: Qd = 700 - 2P - PN
Economics 1100: Intermediate Microeconomics
Spring 2011
Problem Set 6
1.
The two figures show the payoffs for two firms, A and B, in two different games. Answer the following two questions in both cases (explain your answers carefully). a. Determine the d
Intermediate Microeconomics
Midterm #2
1. (35 points total) The market for matchbooks is perfectly competitive, with 25 rms participating. Each matchbook manufacturing rm has the same short-run total costs for any given quantity of output, which is given
Economics 1100: Intermediate Microeconomics
Spring 2011
Problem Set 8
1. Assume Johnny's utility function is U (W ) = W a . a. For what values of a is he risk averse, risk neutral, and risk loving? From now on, assume that a = . Johnny owns a house that w
Intermediate Microeconomics
Problem Set #4
1. Consider a water heater manufacturing company. The number of water heaters manufactured per
day, q , is a function of the number of workers per day, L, and the number of square feet of sheet metal
per day, S .
ECON 1100: Intermediate Microeconomics Instructor: Sandra Orozco Homework 4 Due date: October 13, 2010 IMPORTANT NOTE: Do not forget to label your graphs properly! Abbreviations: SMC= short-run marginal cost SAC= short-run average cost STC= short-run tota
Intermediate Microeconomics
Problem Set #7
1. A monopolists production function is Q = L0.5 K 0.5 , where L is labor and K is capital. The market
demand function for the monopolists output is p = 124 Q. The wage, w, is $1 per hour and the
rental rate of c
Intermediate Microeconomics
Midterm #1
1
2
1. (25 points total) Suppose an individuals utility function is given by U (x, y ) = x 3 (y 6) 3 , where we interpret 6
as the minimum quantity of good y that the individual must consume to remain alive and well.
Intermediate Microeconomics
Final Exam
This is an open book, open notes exam. You have the entire period (195 minutes) to nish this exam. There are
four (4) questions. You must answer all parts of all questions. Each question has several parts, with the l
Intermediate Microeconomics
Problem Set #2
1. The supermarket cashier asks Candace to give a dollar to support cancer research. Suppose Candaces utility function is specied as follows: U (X, c) = X + c where X is the number of dollars she
has to spend on
Intermediate Microeconomics
Midterm #2
This is an open book, open notes exam. There are four (4) questions, of which you must answer the rst three
(3). The nal question will be considered for extra credit and is optional. You have 90 minutes to nish this
Intermediate Microeconomics
Problem Set #8
1. Suppose Firm A and Firm B compete in quantities and face a total market demand curve of p =
450 5Q. Firm A has constant marginal costs of M CA = 50 and Firm B has constant marginal costs
of M CB = 25. They mus
Solution: Final Examination - Econ 1100
Sourav Bhattacharya
Intermediate Microeconomics
1. Production technology is given as q = L2 K: In the short run, since K is xed at K = 1;
the production function is q = L2 :1 = L2 :
(a) L2 = 256 ) L = 16: Price of l
Final - 40 MC
Conditionally non-cumulative (chapters refer back to many concepts of earlier chapters)
International Trade:
(Chapter 2 model of comparative advantage)
Absolute and comparative advantage
Computer opportunity cost of 2 goods in 2 countries ba
Intermediate Microeconomics
Problem Set #4
1. Consider a water heater manufacturing company. The number of water heaters manufactured per
day, q , is a function of the number of workers per day, L, and the number of square feet of sheet metal
per day, S .
Intermediate Microeconomics
Midterm #1
This is an open book, open notes exam. You have 90 minutes to nish this exam. You must
answer all parts of all questions. Show your work as much as possible. If I can see the process you
used to reach your answer, yo
Intermediate Microeconomics
Final Exam
This is an open book, open notes exam. You have the entire period (195 minutes) to nish this exam. There are
four (4) questions. You must answer all parts of all questions. Each question has several parts, with the l
Intermediate Microeconomics
Problem Set #6
1. Consider the following exchange economy with two consumers and two goods, x and y . Consumer
1 initially has 1 unit of x and no units of y so her initial endowment is (ex , ey ) = (1, 0). Consumer
1
3
4
4
1s p
Intermediate Microeconomics
Problem Set #5
1. In a small, but perfectly competitive market for pineapples, there are 8 identical growers. Each
grower has the following cost function C = 2 + 2q 2 , where q is thousands of pounds of pineapples
produced.
a)