ECON216 Tutorial 2 Week 3 1. The following table shows bushels of wheat and yards of cloth that the US and the UK can produce with one hour of labour time under four different hypothetical situations. In each case, identify the commodity in which the US a
David Chen
10.1 HSC Topic: Operations
Students Learn about:



Operations refer to the business processes that involve transformations or, more
generally, production. In manufacturing, it refers to the processes involved in
turning raw materials and re
Chapter 29
NAME
Game Theory
Introduction. In this introduction we oer two examples of twoperson
games. The rst game has a dominant strategy equilibrium. The second
game is a zerosum game that has a Nash equilibrium in pure strategies
that is not a domin
268
COST MINIMIZATION
(Ch. 21)
kinks in the indierence curves. Then you found that the consumers
choice might occur at a boundary or at a kink. Usually a careful look
at the diagram would tell you what is going on. The story with kinks
and boundary soluti
268
COST MINIMIZATION
(Ch. 21)
kinks in the indierence curves. Then you found that the consumers
choice might occur at a boundary or at a kink. Usually a careful look
at the diagram would tell you what is going on. The story with kinks
and boundary soluti
Chapter 25
NAME
Monopoly
Introduction. The protmaximizing output of a monopolist is found by
solving for the output at which marginal revenue is equal to marginal cost.
Having solved for this output, you nd the monopolists price by plugging
the protmaxi
Chapter 25
NAME
Monopoly
Introduction. The protmaximizing output of a monopolist is found by
solving for the output at which marginal revenue is equal to marginal cost.
Having solved for this output, you nd the monopolists price by plugging
the protmaxi
Chapter 19
NAME
Technology
Introduction. In this chapter you work with production functions, relating output of a rm to the inputs it uses. This theory will look familiar
to you, because it closely parallels the theory of utility functions. In utility
the
Chapter 23
NAME
Firm Supply
Introduction. The shortrun supply curve of a competitive rm is the
portion of its shortrun marginal cost curve that is upward sloping and
lies above its average variable cost curve. The longrun supply curve of a
competitive
Chapter 20
NAME
Prot Maximization
Introduction. A rm in a competitive industry cannot charge more than
the market price for its output. If it also must compete for its inputs, then
it has to pay the market price for inputs as well. Suppose that a protmaxi
Chapter 29
NAME
Game Theory
Introduction. In this introduction we oer two examples of twoperson
games. The rst game has a dominant strategy equilibrium. The second
game is a zerosum game that has a Nash equilibrium in pure strategies
that is not a domin
ECON215: Microeconomic Theory and Policy
Week 13 Tutorial Assignment
1. What is behavioral economics? Given that many experimental studies show that people
sometimes behave in ways that standard or conventional economic models would not
predict, what is t
ECON215: Microeconomic Theory and Policy
Week 13 Tutorial Assignment
1. What is behavioral economics? Given that many experimental studies show that people
sometimes behave in ways that standard or conventional economic models would not
predict, what is t
David Chen
10.3 HSC Topic: Finance
Role of financial management
Strategic role of financial management
Financial management is the planning and monitoring of a businesss
financial resources to enable the business to achieve its financial
objectives.
Str
David Chen
10.2HSC Topic: Marketing
Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organisational objectives (American
Mar
Chapter 16
NAME
Equilibrium
Introduction. Supply and demand problems are bread and butter for
economists. In the problems below, you will typically want to solve for
equilibrium prices and quantities by writing an equation that sets supply
equal to demand
182
CONSUMERS SURPLUS
(Ch. 14)
the area of this trapezoid by applying the formula
Area of a trapezoid
=
base
1
(height1 + height2 ).
2
In this case we have A = 5 1 (100 + 50) = $375.
2
Example: Suppose now that the consumer is purchasing the 5 units at a
34
UTILITY
(Ch. 4)
us nd Basils indierence curve through the point (3, 4). First we nd
that U (3, 4) = 33410 = 26. The indierence curve passing through
this point consists of all (x1 , x2 ) such that 3x1 x2 10 = 26. Simplify this
last expression by adding
182
CONSUMERS SURPLUS
(Ch. 14)
the area of this trapezoid by applying the formula
Area of a trapezoid
=
base
1
(height1 + height2 ).
2
In this case we have A = 5 1 (100 + 50) = $375.
2
Example: Suppose now that the consumer is purchasing the 5 units at a
68
DEMAND
(Ch. 6)
case is that the consumer will choose a boundary solution where she
consumes only one good. At this point, her indierence curve will not be
tangent to her budget line.
When a consumer has kinks in her indierence curves, she may choose
a
NAME
7
2.1 (0) You have an income of $40 to spend on two commodities. Commodity 1 costs $10 per unit, and commodity 2 costs $5 per unit.
(a) Write down your budget equation.
10x1 + 5x2 = 40.
(b) If you spent all your income on commodity 1, how much could
68
DEMAND
(Ch. 6)
case is that the consumer will choose a boundary solution where she
consumes only one good. At this point, her indierence curve will not be
tangent to her budget line.
When a consumer has kinks in her indierence curves, she may choose
a
50
CHOICE
(Ch. 5)
x2 = 20. Therefore we know that the consumer chooses the bundle
(x1 , x2 ) = (120, 20).
For equilibrium at kinks or at corners, we dont need the slope of
the indierence curves to equal the slope of the budget line. So we dont
have the ta
50
CHOICE
(Ch. 5)
x2 = 20. Therefore we know that the consumer chooses the bundle
(x1 , x2 ) = (120, 20).
For equilibrium at kinks or at corners, we dont need the slope of
the indierence curves to equal the slope of the budget line. So we dont
have the ta
Review MCQs Chapter 11 12 13 14 and 15 Chapter 11 1. Which is not a function of the foreign exchange market? a. to transfer funds from one nation to another b. to finance trade c. to diversify risks d. to provide the facilities for hedging 2. An increase
ECON216 Chapter 11, 12 and 13 Questions 1. Assume that SR=$2/1 and the threemonth FR=$1.96/1. How can an importer who will have to pay 10,000 in three months hedge the foreign exchange risk? The importer would have to purchase forward 10,000 pounds for d