Economics 335 Final Exam (25 points) Name: _ 1. (3 points) Economists often collect data to measure the difference between price and marginal cost in a market to determine whether market power exists. Explain how this technique can detect a non-competitiv
Economics 335 Price Discrimination
Name:
1. A monopolist faces two types of customers, which will be referred to as group 1 and group 2 consumers. The inverse demand of group 1 consumers is given as P1 (Q1 ) = 200-Q1 , where P1 is the price that they pay
Economics 335 Monopoly
Name: 1. Consider a monopolist with the following cost and demand functions: C(Q) = 900 + .5Q2 QD (P ) = 120 p a. What is the marginal cost function, and at what quantity of output is marginal cost minimized?
b. What is the and aver
Economics 335 Duopoly/Duopsony Problem Set
Name: 1. Suppose that there are two beef packing rms operating in a market. There is no further threat of entry. The price for the rm output, boxed beef, is $12.5 and is constant, i.e., the s rms are price takers
Economics 335 Midterm # 1
Student ID: _ True or False (1/4 point each) Please circle T if the statement is true and F if it is false. 1. T F Quasi-rents are the returns over and above the minimum return required to keep an asset employed in its current us
Economics 335 Game Theory Problem Set
Name: 1. Consider the following two-person game: Player 2 L C 1,2 1,1 3,3 5,5 5,1 6,3 R 1,0 2,2 1,2
Player 1
U M D
(a) Player 1 does not have a dominant strategy in this game. Explain why:
(b) Player 2 does not have a
Economics 335
Problem Set 2
NAME: _ 1. A single Iowa hog grower and a small packing facility are considering a joint venture in which they plan to produce and market high quality pork. They plan to market the pork under the brand name IQ Pork, which is sh
Monopsony/Externalities Problem Set
Name: Consider the following production function for a firm using two inputs x1 and x2 ; q = 20x1 + 15x2 - x2 - x2 1 2 where q denotes output. Assume that the price of output is $100.00 and the prices of inputs are w1 =
Economics 335
Problem Set 3
NAME: _ Profit-maximizing input choices 1. Consider the following production function for a firm using two inputs x1 and x 2 ,
2 q = 20 x1 + 14 x 2 - 2 x12 + 2 x1 x 2 - x 2 ,
where q denotes the quantity of output that is produ
Economics 335 Problem Set #4 Name: _ Assume that the manufacturing of cellular telephones is a perfectly competitive industry. The market demand for cellular phones is described by a linear demand function QD = 208 p, where p denotes the market price. The
Problem Set #1: Mathematics and Calculus Primer
Name: _
We will model economic phenomenon using functional relationships. Single variable calculus, algebra and basic geometry skill will be important. I assume that you have successfully completed the class
Economics 335 Midterm 1 (10 Points) NAME: _ (HINT: If you have trouble with mathematics, explain in words what your are trying to accomplish at each step of your analysis.) 1. (1 point) Suppose that you work for Archer Daniels Midland Company. ADM has rec
Economics 335 Second Midterm (20 points) NAME: _ 1. (3 points) Suppose that a monopolist faces the following downward sloping ordinary demand curve, P(Q ) = 100 - Q , and has a cost function given by C (Q) = Q 2 . How much output should it produce to maxi