Intermediate Microeconomics, Winter 2008
Problem Set NoApril 3
19
due: Wednesday, April 2; Thursday,
Reading: Chapter 11, 12. We will talk about the monopolist but we will
not cover all of these chapters. You might want to read parts of them to get an
ide
Solutions: Assignment 1
ECON 401 Microeconomic Theory 3
Jean Guillaume Forand
Fall 2013, Waterloo
1. Assume that the set of alternatives is X = R2 and consider the preference relation
that, for any x, y X , x y if and only if mincfw_x1 , x2 mincfw_y1 , y
E
601
1
Sample questions 1
1. MWG, 1.B.3 and 1.B.4.
cfw_a, b , cfw_a, c , cfw_a, d , cfw_b, c , cfw_b, d ,
and (B, C ()
cfw_c, d , cfw_d, b, c , cfw_a, b, d , cfw_a, c, d
be a choice structure. Suppose C () is such that d is the best choice whenever d is
E
601
1
Answers to sample questions 1
1. MWG, 1.B.3
Proof: We say that u () represents
for all x, y X, x
on choice set X if
y if and only if u (x) u (y )
(1)
To complete the proof note that if f () is a strictly increasing function dened on
the real numbe
University of Waterloo
Economics 401
Assignment #1 Solutions
1. Derive the reduced simple lotteries that correspond to the following complex
lotteries.
(a) I will ip a coin that comes up heads with probability p. If it comes up
heads on the rst ip, I will
E
401
1
Final Examination questions
1. What does it mean to say that preferences t the Gorman polar form? Do
quasi-linear preferences t the Gorman form? Do aggregate demands based on the
Gorman form have the property that demands are independent of the di
Topics for the Exam
Chapter 6&7 Production and Costs
Topics:
Production Functions and Isoquants, Returns to Scale, Short-run vs Long-run
Decisions, Costs of Production: Diminishing marginal returns, Deriving cost
functions, Economies of Scale
Chapter 8 Co
E
601
1
Sample test 1 questions
cfw_a, b , cfw_a, c , cfw_a, d , cfw_b, c , cfw_b, d ,
and (B, C ()
cfw_c, d , cfw_d, b, c , cfw_a, b, d , cfw_a, c, d
be a choice structure. Suppose C () is such that d is the best choice whenever d is
1. Let X = cfw_a, b,
University of Waterloo
Economics 401
Assignment #4 Solutions
1. Consider a risk neutral seller, S, who owns a single indivisible good which he
can sell to a risk neutral buyer, B. The seller is privately informed about his
cost c and the buyer is privatel
E
401
1
Integrability
If a system of demand equations satises the properties that follow from the
preference based approach, can one nd a utility function that rationalizes the demand
system? MWG argue that under quite general conditions, the answer is ye
1. Introduction & Review
(Appendices & chapter 1)
Math, Probability, Stats Review
Constant something that does not change Variable something that takes on different values for different observations Parameters constants that define the direction & strengt
1
7th December 2007
Instructions: Answer 6 of the following 8 questions. All questions are of equal
weight. Indicate clearly on the rst page which questions you want marked.
1. A job candidate from a big US university is presenting his work which emphasiz
THE DIGITAL PROVIDE: INFORMATION (TECHNOLOGY), MARKET PERFORMANCE AND
WELFARE IN THE SOUTH INDIAN FISHERIES SECTOR*
Robert Jensen
When information is limited or costly, agents are unable to engage in optimal arbitrage. Excess price dispersion
across marke
University of Waterloo
Department of Economics
Microeconomic Theory
Economics 601
Course Outline Fall 2009
Classroom RCH-205
Times: 10:30-noon MW
Instructor: John Burbidge
Office:
HH-216
Telephone: ext. 37204
Email:
[email protected]
Web:
http:/artson
University of Waterloo
Economics 401
Assignment #2 Solutions
1. Consider an expected utility maximizer who faces the following lottery: L =
1
7
1, 5 ; 3, 15 ; 8, 1 .
3
(a) Suppose her preferences over outcomes can be represented by the utility
function u(
University of Waterloo
Economics 401
Assignment #3 Solutions
1. Consider a so-called sealed bid third price auction, in which the winner is the
person who bids the most and the payment is the third highest bid made.
(a) Show that bidding ones valuation we
Economics 401
Assignment 4
Must be handed in, in class, Tuesday July 15th 2014
Name:
Student Number:
1
Please print this assignment and then answer all questions in the space provided. Please write clearly and concisely.
1. Each year 1, 000 risk-neutral c
University of Waterloo
Economics 401
Assignment #1 Solutions
1. Derive the reduced simple lotteries that correspond to the following complex
lotteries.
(a) I will ip a coin that comes up heads with probability p. If it comes up
heads on the rst ip, I will
Practice Questions: Set 1.
The Real Economy
Lecture Date: Jan. 3rd
i) Explain why there is no role for money in the Edgeworth box model. What does this
tell us about the role of money in actual economies?
ii) Explain why there is no role for financial ins
Class 3
Preferences and Utility
Problem Set 2
Problemset 3: Due Wed/Thrus
MathReview 2: Due Wed/Thursday next Week
What we did last time:
Use elasticity to summarize information on slope
Use elasticity to predict:
Impact of Supply Shocks
Impact of Taxes
o
Economics 401
Assignment 5
Must be handed in, in class, Thursday July 24th 2014
Name:
Student Number:
1
These questions are of equal weight.
1. Print the graphs at the end of the pdf le on taxation and redistribution on the web
site. Describe and explain
Intermediate Microeconomics, 2008
Problem 4; Tuesday, Feb 57
Set No
due: Monday, Feb
Problems
Please, answer the following questions in the book.
Chapter 5, Question 20, 30,
Chapter 16, Question 4, 8, 14 (Note: You don need to use a decision tree
t
to ans
1
6th December 2008
Instructions: Answer 7 of the following 9 questions. All questions are of equal
weight. Indicate clearly on the rst page which questions you want marked.
1. Assume some consumer chooses bundle xj at prices pj , j = 1, 2, 3, where
p1 =
Intermediate Microeconomics, 2008
Problem Set No 7: Solutions
Problems
(5.20) Jerome moonlights; he holds down two jobs. The higher-paying job pays w, but he can
work at most eight hours. The other job pays w , but he can work as many hours as he wants.
S
University of Waterloo
Economics 401
Assignment #2 Solutions
1. Consider an expected utility maximizer who faces the following lottery: L =
1
7
1, 5 ; 3, 15 ; 8, 1 .
3
(a) Suppose her preferences over outcomes can be represented by the utility
function u(
Intermediate Microeconomics, Winter 2008
Problem problem set will not be collected.
Set No 14 - Solutions
This
Please, answer the following questions from the book: 10.14, 10.15,
10.14) If Jane and Denise have identical, linear production possibility fron
Intermediate Microeconomics, 2008
Problem Set No 18: Solutions
Problems
13.30 At a busy intersection on Route 309 in Quakertown, PN, the convenience store and gasoline
station, Wawa, competes with the service and gasoline station, Freds Sunoco. In the Ber
Intermediate Microeconomics, Econ 401 Winter 2008
Problem Set No 16: Solutions
(14.2*) Show the payo matrix and explain the reasoning in the prisoners dilemma example where
Larry and Duncan, possible criminals, will get one year in prison if neither talks
Problem Set 9 Solutions
ECON 401, Winter 2008
Perlo 6.25 In the short run, a rm cannot vary its capital, K = 2, but it can vary its
labor, L. It produces output q . Explain why the rm will or will not experience diminishing
marginal returns to labor in th