Microeconomics Exam 1
Q: Microeconomics is concerned with:
A: a detailed examination of specific economic units that make up the economic system.
Q: Which of the following is a distinguishing feature
Microeconomics Exam 2
Q: A market:
A: is an institution that brings together buyers and sellers.
Q: The law of demand states that, other things equal:
A: price and quantity demanded are inversely rela
Microeconomics Exam #4
Q: Which market model assumes the least number of firms in an industry?
A: Pure monopoly
Q: There would be some control over price within rather narrow limits in which market mo
Microeconomics Exam #3
Q: At what point does marginal product equal average product?
A: Where marginal product is equal to its minimum value
Q: Which would be an implicit cost for a firm? The cost:
A:
Mathematical Optimization Problem
The mathematical optimization problem involves
choosing values of certain variables to optimize a
function subject to constraints.
The variables are called instrume
ECONOMIC DECISIONS
AND MATHEMATICAL
OPTIMIZATION PROBLEMS
SCOPE OF MANAGERIAL ECONOMICS
Douglas : Managerial economics is . the
application of economic principles and
methodologies to the decision-ma
Mathematical Optimization Problem
The mathematical optimization problem involves
choosing values of certain variables to optimize a
function subject to constraints.
The variables are called instrume
INTEGER LINEAR PROGRAMMING
Variables may assume continuous or integer
values.
Addition of integrality condition
INT(Xi) = largest integer that is less than Xi
VOF (x*)ILP VOF (x*)LP if max problem
PRODUCTION
AND COST ANALYSIS
PRODUCTION FUNCTION
Q f ( x, y )
The maximum output that can be produced
for a given amount of input.
Discrete vs. continuous
Returns to scale vs. Returns to a factor
OUTPUT ELASTICITY
% change in output
Q
% change in all inputs
Q / Q
I / I
Q I
I Q
Q > 1 increasing RTS
Q = 1 constant RTS
Q < 1 decreasing RTS
COST ELASTICITY
% change in cost
C
% change in output
C
Lecture HO model
Factor Proportions Trade Model
Outline
Factor intensity
Factor endowment
Neoclassical theory of trade
Assumptions behind the HO Model
Two goods, X and Y; two countries, H and F, and t
ECONOMIC DECISIONS
AND MATHEMATICAL
OPTIMIZATION PROBLEMS
SCOPE OF MANAGERIAL ECONOMICS
Douglas : Managerial economics is . the
application of economic principles and
methodologies to the decision-ma
EMPLOYEE SCHEDULING
(Ragsdale, p. 277) Snookers Restaurant is open from 8:00 am to
10:00 pm daily. Besides the hours that they are open for
business, workers are needed an hour before opening and an h
Example 1
Solve the following linear programming problem by
solving the dual problem:
min G = 6y1 + 20y2 + 3y3 + 20y4
subject to
3y1 + 6y2 - y3 + 2y4 4
-4y1 + 2y2 + y3 + 5y4 2
yi 0 i = 1, ., 4
Example
Use of Artificial Variables
When the computational form of the LPP is not canonical
with respect to some basic sequence, artificial variables are
used. This happens in 2 cases:
a) the original problem
MINIMAL SPANNING TREE PROBLEM
80
B
60
A
55
C
D
70
75
95
90
60
E
H
85
60
G
90
50
70
75
65
45
120
F
80
I
J
ALGORITHM
MINIMAL SPANNING TREE PROBLEM
(1)Pick any node as the initial connected
node.
(2)Iden
Thm. If x is primal feasible and y is dual feasible then
VOF(x) VOF (y), i.e., the minimand can never fall below the
maximand.
Thm. If x* is primal feasible and y* is dual feasible, and
VOF (x*) = VOF
GOAL PROGRAMMING
MULTIPLE OBJECTIVE LINEAR PROGRAMMING
Enabling Business, Empowering Consumers
2
GOAL PROGRAMMING
1. James Furniture produces tables and chairs using
wood and labor. He has 300 units
Name: _ Date: _
1. The Columbus Zoo conducts a study to determine whether a household's income can be
used to predict the amount of money the household will give to the zoo's annual fund
drive. The re
Name: _ Date: _
Use the following to answer question 1:
For a physics course containing 10 students, the maximum point total for the quarter was 200. The
point totals for the 10 students are given in
Density Curves, mean and
median
AP Statistics
A density curve is a curve that
Is always on or
above the horizontal
axis and,
Has an area of 1
underneath it
Describes the
overall pattern of a
distri
_
1. The pie chart describes the distribution of state tree types for the 50 states in the United States.
The category Other include all trees that are the state tree for two or fewer states. Which of
17-1 Electrostatic Potential Energy and
Potential Difference
Potential energy can be
defined
PE W
Change in electric potential
energy is negative of work
done by electric force:
Electric potential is
23
1. A unique aspect of amino acid metabolism involves removal of the amino group.
Know aspects of this as discussed in class including the role of glutamate,
transaminations, glutamate dehydrogenase
Intro to Microeconomics
Exam I
Economics more like a social sciences
Study of human behavior in market situations
Almost all waking hours are spent in market situation
In economics, we make assumpti
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