ECO206 (Spring 2012) - Problem Set
Asymmetric Inf o(Chapter37)
1. Suppose that 16 year olds have a 90% probability of having an automobile accident that
results in damages of $10,000. However, only a 10% probability exists for 20 year olds have a
similar
Chapter 4 - Utility, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 Angelas utility function is U (x1 , x2 )
TERM TEST - June 21st, 2010
True/False Questions
Indicate whether the statement is true or false and explain your choice by providing a
detailed answer.
Question 1.
Charlies utility function is U (x, y ) = xy 2 . His marginal rate of substitution between
Chapter 6 - Demand, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 Prudence was maximizing her utility subjec
MGEC02 Lecture 5
Game Theory-I
Jack Parkinson
1
OUTLINE
Gaming and Strategic Decisions
Dominant Strategies
The Nash Equilibrium Revisited
Repeated Games
Sequential Games
Threats, Commitments, and Credibility
Entry Deterrence
Auctions
2
GAMING AND STRATEGI
Chapter 2 - Budget Constraint, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 If good 1 is measured on the ho
Additional practice problems, first semester, ECO206
1.
Morts utility function is U(x1, x2) = x1x2. His income is $100. The price of good 2 is $10. Good 1 is
priced as follows. The first 6 units cost $10 per unit and any additional units cost $5 per unit.
Chapter 21 - Cost Curves, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 Average cost can never rise while ma
Chapter 9 - Buying and Selling, Practice Problems, ECO 206
Long Answer Problems
Please provide detailed answers to each question
Question 1 Dudley has a utility function U (C, R) = C (12 R)2 , where R is leisure
and C is consumption per day. He has 16 hou
Chapter 20 - Cost Minimization, Practice Problems, ECO 206
Long Answer Problems
Please provide detailed answers to each question
Question 1 A rm has the production function Q = KL, where K is the amount of
capital and L is the amount of labor it uses as i
ECO206 (Spring 2012) Problem Set
General Equilibrium I: The Pure Exchange Economy (Chapter 31)
Question 1
Determine whether the following statement is are true, false, or uncertain. Explain in detail.
In a pure exchange economy with two goods, if there is
ECO206 (Spring 2012) Problem Set
Game Theory II: Strategic Games with Mixed Strategies
Question 1
Consider the goalie anxiety at the penalty kick. Let the kickers pay-os below represent the kickers
probability of success and the goalies pay-os the probabi
ECO206 (Spring 2012) Problem Set
General Equilibrium II: Robinson Crusoe Economy (Ch 32)
Question 1
Yousef lives alone in the forest and only eats berries. If he spends h hours picking berries in day, then he
can pick h litres of berries. Yousefs utility
ECO206 (Spring 2012) Problem Set
Game Theory II: Extensive Games (Ch27,28,29)
Question 1
Consider the following sequential game of nuclear deterrence with two players, the USSR and the USA. If the
USSR invades the USA or any of its allies (such as Europe)
ECO206 (Spring 2012) - Problem Set
W elf are(Chapter33); Externalities(Chapter34)
Question 1:
Suppose the utility possibility frontier (UPF) for two individuals is given by UA + 2UB = 300
(a) Draw the graph of UPF.
(b) Solve for the socially optimal alloc
ECO206 (Spring 2012) - Problem Set
P ublic Goods(Chapter36)
1.
The services provided by ships operated by the Coast Guard are a public good. Suppose
that the equation relating the marginal benet Ted derives from the quantity of ships produced
(Q) is M B1
ECO206 (Spring 2012) Problem Set
Game Theory I: Strategic Games in Pure Strategies (Chapter 28,29)
Part I
Question 1
Determine whether each of the following statements is true, false or uncertain. Explain in detail.
(a) A situation where everyone is playi
ECO206 (Spring 2012) Problem Set
Chapter 26: Factor Markets
Question 1
Life Hospital is the only provider of medical services in a small town. Since the hospital is neither large
nor technologically advanced, it only provides one type of medical service:
ECO206 (Spring 2012) Problem Set
Chapter 25: Price Discrimination
Question 1
Given the information in regular (not bold) text, determine whether the statements in bold are true, false,
or uncertain. Explain in detail.
(a) Bayer, a pharmaceuticals company,
ECO206 (Spring 2012) Problem Set
Monopoly (Chapter 24)
Question 1
StarBridge is considering operating a particular bridge. The bridge would reduce commuting time for people
living in the neighbourhoods close to the bridge. The demand for trips across the
ECO206 (Spring 2012) Problem Set
Industry Supply (Chapter 23)
Question 1
Suppose that there are only two rms producing oil, Oil Sands and Gulf Oil. These rms seek to maximize
prots. Although there are only two rms in the oil industry, we will image that b
Chapter 5 - Choice, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 Jane Does utility function is U (x, y ) =
Chapter 6 - Demand, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 Prudence was maximizing her utility subjec
Chapter 8 - Slutsky Equation, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 Ivan spends his entire income on
Chapter 9 - Buying and Selling, Practice Problems, ECO 206
Long Answer Problems
Please provide detailed answers to each question
Question 1 Dudley has a utility function U (C, R) = C (12 R)2 , where R is leisure
and C is consumption per day. He has 16 hou
Chapter 12 - Uncertainty, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 If someone has strictly convex prefe
Chapter 18 - Technology, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 If y is the amount of output and x1 a
Chapter 3 - Preferences, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 If there are two goods, if a consumer
Chapter 5 - Choice, Practice Problems, ECO 206
True/False/Uncertain Questions
Indicate whether the statement is true, false or uncertain and explain your choice by
providing a suciently detailed answer
Question 1 Jane Does utility function is U (x, y ) =