Economics 2261
Peter Streufert
Winter 2009
MIDTERM 1
Short Questions (7 points each)
1. If a monopoly faces the demand function Q = v 10 — P, What is
its marginal revenue?
2. Recall that elasticity 5Q}: is always negative. For what value(s)
of 852,1: is m

Economics 2261
Winter 2009
Peter Streufert
A SURFING PROBLEM FOR CHAPTER 16
Suppose that Robinson has 4 hours of time , and that the production
function for catching sh is F = 2 , where F is the amount of time that
F
Robinson spends catching sh. Further s

Economics 2261
Winter 2009
Peter Streufert
A VEGETABLE PROBLEM FOR CHAPTER 16
Suppose that Robinson has 9 hours of time , that the production
function for beans is b = b where b is the amount of time that Robinson spends working with beans, and that the p

Economics 2261
Winter 2009
Peter Streufert
EXTRA PROBLEM FOR CHAPTER 13
1. Avinash and Byng (abbreviated A and B) each own a video
store along the only street in a small town. There are 100 people in
the town, the street is 100 meters long, and there is o

Economics 2261
Winter 2009
Peter Streufert
EXTRA PROBLEMS FOR CHAPTER 11
1. Find the demand for x in each of the following consumer problems. (Hint: Use the shortcut from class. These problems should be
very easy.)
(a) maxx,y cfw_ xy | 3x + 6y = 54 .
(b)

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Economics 2261
Peter Streufert
Winter 2009
QUIZ 1
1. (like B&B Problem 11.15) Suppose that a monopolist faces the
market demand function P = a — bQ. Its marginal cost is given by
MC : 1 + Q. Assume that a, > 1.
(a) Derive an expression for the mo

Economics 2261
Winter 2009
Peter Streufert
A BRONZE PROBLEM FOR CHAPTER 16
1. Imagine its the Bronze Age, in which the most advanced metalworking is done with bronze (a combination of copper and tin). A
metalworker named Robinson is marooned on an island

Economics 2261
Peter Streufert
Winter 2009
MIDTERM 2
[FOC] You do not need to worry about second-order conditions at
any point during this examination.
1. (15 points) Suppose that N rms face the inverse demand function
P =122Q, where Q is the sum q1 +q2 +

Economics 2261
Winter 2009
Peter Streufert
AN AUCTION PROBLEM FOR CHAPTER 15
1. Beth, Sara, and Eric have just enjoyed eating pizza in a restaurant. They are stued, and the server has boxed the leftover pizza.
All three of them would like to take the box