Brown
3310
Pop Quiz #1 Answers
1. Bills budget constraint relating hamburgers and French fries has intercepts of 20
hamburgers and 30 orders of French fries. If the price of a hamburger is $3,
a. what is Bills income?
ANS: Bills income is Ph*H + Pf*F =I.
Brown
3310
Extra Problems before Test #1 Answers
Math and Economic Review
1. Find the (unique) values of x and y that simultaneously solves the following two
equations.
y = 10+2x
y = 100 x
Carefully graph the two equations and illustrate the solution that
Brown
3310
Exam 3 Intermediate Microeconomics Condensed Study Notes
(NOTE: THIS IS NOT A COMPREHENSIVE STUDY GUIDE)
Competitive Markets:
1. Competitive Industry Equilibrium: Quantity Supplied = Quantity Demanded
*This determines the Market Price which eac
Spring 2007
Worth 50 points
April 24, 2007
You must provide a complete explanation of how you got your answers.
1. Suppose your marginal costs have the normal "U" shape. At what point does the average
cost curve start to slope upward?
2. Suppose your firm
Fall 2007
Worth 50 points
Nov. 20, 2007
You must provide a complete explanation of how you got your answers.
1. Your firm regularly retires a dozen computers a year and you are responsible for replacing
them. Based on meeting your specifications, you cons
Spring 2010
Worth 50 points
April 5, 2010
You must provide a complete explanation of how you got your answers.
1. Suppose we run the production experiment in class and get the following data:
K
1
L
1
Q
6
1
2
14
1
3
24
1
4
32
1
5
40
1
6
44
2.
Calculate the
Summer 2010 Exam 5
Worth 100 points
July 8, 2010
You must provide a complete explanation of how you got your answers.
1. Why does the earnings difference between high school graduates and college graduates
overstate the return to a college degree?
2. A su
Summer 2010 Exam 4
Worth 100 points
July 1, 2010
You must provide a complete explanation of how you got your answers.
1. If a monopolist sets price above average costs, why don't firms enter and compete away the
profits?
2. If demand is QD = 1,000 - 10P a
Summer 2010 Exam 3
Worth 100 points
June 24, 2010
You must provide a complete explanation of how you got your answers.
1. A number of tasks are linked together in a chain to create a consumer product. Subsets of
these tasks are grouped into a firms. What
Fall 2010 Exam 3
Worth 50 points
Dec. 14, 2010
You must provide a complete explanation of how you got your answers.
1. The inverse demand for a months supply of Viagra is PD = 110 - Q and the marginal cost is
$10. If Pfizer has a monopoly on Viagra, what
Fall 2010 Exam 2
Worth 50 points
Nov. 4, 2010
You must provide a complete explanation of how you got your answers.
1. Suppose we run the production experiment in class and get the following data:
K
1
L
1
Q
13
1
2
28
1
3
48
1
4
66
1
5
80
1
6
90
2. Calculat
Fall 2006
Worth 50 points
Oct. 5, 2006
You must provide a complete explanation of how you got your answers.
1. Suppose that a utility function can be expressed as U(X) = X1/2. What is utility at X =
100? At X = 100, is marginal utility positive or negativ
Spring 2006
Worth 50 points
Nov. 21, 2006
You must provide a complete explanation of how you got your answers.
1. With a fixed proportions production function (e.g., routes = f( buses, drivers), holding
output constant, what is the effect of higher driver
Brown
Econ 3310
Practice Problems Before Exam #3
Profit Maximizing Monopolist and Competitive Firm
1. The following table presents cost and revenue information for Eds Port Vineyard
in a day of producing and selling bottles of wine. The market for wine is
Brown
3310
Pop Quiz #2
1.With only two goods, if the income effect is in the same direction as the substitution effect then
the good is
a. normal
b. inferior but not Giffen
c. Giffen
d. There is not enough information to answer.
ANS: a
2.Suppose a persons
Brown
3310
Extra Problems before Test #1
Math and Economic Review
1. Find the (unique) values of x and y that simultaneously solves the following two
equations.
y = 10+2x
y = 100 x
Carefully graph the two equations and illustrate the solution that you fou
Changes in Income and Prices of
Goods
By the end of this section you
should be able to:
Discuss the effect of changes in income
and prices on utility maximization
Define the Engel Curve
Define normal goods and inferior goods
Define and graphically dep
Consumer Behavior:
Utility Curves
By the end of this section you
should be able to:
Define a utility curve and discuss its
properties
Define and calculate Marginal Rate of
Substitution
Discuss the Law of Diminishing Marginal
Utility
Define and draw in
Consumer Behavior:
Utility Maximization
By the end of this section you
should be able to:
Define and graph budget constraints
Find the slope of a budget constraint
Analyze, graphically depict and discuss
utility maximization.
Budget Constraint
So now
Review for Intermediate
Microeconomics:
Economics
By the end of this Section you
should be able to:
Economics Review/Background
Know the reasons and relationship between
economic theories, models, and assumptions
Discuss Supply, Demand and Equilibrium
Brown
Elasticity Cliff Notes
Price Elasticity of Demand:
Ep =
% in Quantity Demanded = Q x (P1+P2)
% in Price
P
(Q1+Q2)
*This number will always be negative, so for this elasticity only, economists will only report the positive number.
The price elasticit
Review for Intermediate
Microeconomics:
Math
By the end of this Section you
should be able to:
Math Review
Explain a basic graph and relationship
between variables
Solve Simultaneous equations
Understand why we take derivatives
Graph Review
Graphs di
Spring 2007
Worth 50 points
Feb. 22, 2007
You must provide a complete explanation of how you got your answers.
1. You go to a party and notice, to your delight, a bowl of peanuts. You enjoy peanuts and are considering
how many you should eat at a sitting.
Fall 2007
Worth 50 points
Oct. 11, 2007
You must provide a complete explanation of how you got your answers.
1. You are trying to decide how many courses to take next semester. You enjoy learning new concepts and
ideas, but you know that if you take too m
Spring 2008
Worth 100 points
Marr. 12, 2008
You must provide a complete explanation of how you got your answers.
1.
If people buy music CDs up to the point where the marginal benefit is completely taken by marginal cost, how can there be
any consumer bene
Spring 2010
Worth 25 points
Feb. 3, 2009
Due: Feb. 10, 2009
You must provide a complete explanation of how you got your answers.
1. Suppose the pleasure you get from giving your Valentine roses next weekend can be
described by a dollar benefit function B(
Summer 2010
Worth 100 points
June 7, 2010
Due: June 10, 2010
You must provide a complete explanation of how you got your answers.
1. Suppose the opportunity cost to you of studying economics is foregone video game play. Your utility
function for time spen
Summer 2010
Worth 100 points
June 7, 2010
Due: June 10, 2010
You must provide a complete explanation of how you got your answers.
1. Suppose the opportunity cost to you of studying economics is foregone video game play. Your utility
function for time spen