Skelton Eco 3301
Homework 2
1. Suppose you divide your income between cheese and other goods. Cheese costs $4 a pound and you buy 10 pounds a day. One day the price of cheese rises to $6 a pound and at the same time your income rises by $20 a day. D
Skelton Eco 3301
Homework 5 Answers
1. A) Since capital is fixed at 10, then the short-run production function would be Q = 40L. This implies that for any level of output (Q), the number of labor teams hired will be L = Q/40. The total cost function
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ECO 3301
PRACTICE FOR TEST #2
MULTIPLE CHOICE. Choose the one alternative that best completes the statEment or answers the question.
if
E: .
g
i
1) In the long run, all factors of production are I 1)
A) rented. B) materials. C)
ECO 3301—001&003 Name:
(Circle your section above)
Price Theory Number:
HOMEWORK #1 (p. 1 of 3)
Consider the market for new, single-family homes in New Orleans. The generalized demand function
for new housing in New Orleans is estimated to be: '
Q,l = 15
Skelton Eco 3301
Homework 4 Answers
1. A) This increases MC, so it will impact price. B) This is equivalent to part A; either one increases (marginal) production costs, so price is affected. C) This is a fixed cost, so it has no impact unless it dri
Skelton Eco 3301
Homework 3 Answers
1.
The utility Martha Stewart derives from her purchase of bowls and stock tips is represented by the equation U(b,s) = b0.75s0.25, so that MUb = 0.75*b -0.25s0.25 and MUs = 0.25*s -0.75b0.75. A) Demand for stock
Skelton Eco 3301
Homework 5
1. Assume that you manage a plant that mass produces engines by teams of workers using assembly machines. The technology is summarized by the production function Q = 4KL, where Q is the number of engines produced per week
Skelton Eco 3301
Homework 4
1. Which of the following might affect the price of a hamburger at Upton Sinclairs Jungle Bar & Grill? A) The price of meat rises. B) A new restaurant tax of $1 per hamburger is imposed. C) The restaurant is found to be i
Skelton Eco 3301
Homework 1
1. If the demand curve for a good is given by the following equation: Q = 1,000 200*P And, the supply curve is given by: 300*P Calculate equilibrium price and quantity.
A) Suppose an excise tax of $0.50 is placed on the
Skelton Eco 3301
Homework 3
1.
The utility Martha Stewart derives from her purchase of bowls and stock tips is represented by the equation U(b,s) = b0.75s0.25, so that MUb = 0.75*b -0.25s0.25 and MUs = 0.25*s -0.75b0.75. A) What equation describes
Skelton Eco 3301
Homework 2 Answers
1. After the changes, you can still afford your original basket, so you must be better off after the changes. 2. No, he should not make the trade because the ratio of prices (for basketball tickets over movie tick
ECON3301 - Fall 2015
SMU - SSB
Intermediate Macroeconomics Quiz 4
Instructor: Dr. Maryam Dilmaghani
The small country of Vinebourg has a single output, red wine. It is produced using labour and capital, as in
here:
,0
1. Answer the following questions.
1.