Managerial Economics BSP1005
NATIONAL UNIVERSITY OF SINGAPORE
Semester 2 (2010/2011) Examinations
12th March 2011
Time Allowed: 1 Hour 15 min
INSTRUCTIONS TO CANDIDATES
1.
Answer ALL questions.
2.
Ordinary calculators are allowed. Graphic calculators are

Question 6
Presenters:
Vincent Chong Yi Qin (A0071547A)
Rachel Yap( A0141854E)
Vanessa Khoo (A0141684A)
Yang Liuping(A0148170J)
Zhao Jiaqi(A0142417M)
Background information
Cosmos Bottling is a bottler of carbonated drinks in the
Philippines. From the lat

BSP1005: Assignment #2
Due in Tutorials week of 5/9/11 to 9/9/11
True, False, Uncertain. Justify your answer briefly. Include graphs when necessary.
1. SBS MRT has been experiencing declining revenues despite fare increases." Assuming that
the demand for

The Midterm Exam is scheduled for Saturday, October 1 from 2-4
pm in the Multi-Purpose Sports and Recreation Hall (MPSRH).
Following are some practice problems:
1. Suppose Jennys income elasticity for good x is -0.10 when her monthly income is $1,000,
and

BSP1005B: Midterm Practice Questions with Solutions
p
1. Joes Crab Cakes (JCC) has production function F (K, L) = 2 KL,
q
q
L
with M PK = K and M PL = K . The market wage is $10 and the
L
rental price of capital is $20.
(a) Write the equation for the rms

Homework Problem Set 1
Due on week 6 (15-19 Sep)
Due on week 6 (15 - 19 Sep). Each student is required to prepare a
typed or clearly handwritten answer to be submitted at the beginning of
your designated tutorial.
1. Jane consumes three goods x, y, z. The

Sample Exam 1
To be discussed in week 11 tutorial
This is a sample exam with solution keys. I strongly suggest you: 1.
work without textbooks, lecture notes or group discussion; 2. set a 2-hour
limit; 3. solve the problems rst, then compare with the solut

Solution key to HW1:
1. Let Janes income be I. Then she will spend I/4 on good x, thus
consumes I/4px units of good x. The income elasticity of demand for
good x is:
Q/Q
=
I/I
QI
I Q
I
1
I
Since Qx = 4px , Q = 4px , and Q = 4px . Hence income elasticity i

Final Exam Practice Problems BSP1005
Only topics from second half of the lecture ( and that too not all topics) are covered in these
practice MCQ For topics in the first half refer to the two practice papers already posted.
1.
Which of the following state

BSP1005B
Semester 1, 2010/2011
National University of Singapore
NUS Business School
Managerial Economics: Midterm Examination
October 4th, 2010
Total No. of Questions: 25
Total Time: 1 hour
Total Points: 100
1. Suppose that the market for newspaper is ini

Final Exam Practice Problems BSP1005
Only topics from second half of the lecture ( and that too not all topics) are covered in these
practice MCQ For topics in the first half refer to the two practice papers already posted.
1.
Which of the following state

Homework Problem Set 2
(Due on the week of Feb 6, to be submitted to designated tutorials)
1. The daily demand for Invigorated PED shoes is estimated to be:
Qd = 100 3Px + 4Py 0.01M + 2Ax
x
where Ax represents the amount of advertising spent on shoes(X),

Chapter8 ProfitMaximizationandCompetitiveSupply
1) Apricetakeris
A) afirmthatacceptsdifferentpricesfromdifferentcustomers.
B) aconsumerwhoacceptsdifferentpricesfromdifferentfirms.
C) aperfectlycompetitivefirm.
D) afirmthatcannotinfluencethemarketprice.
E)

Chapter15 Investment,TimeandCapitalMarkets
1) Themarginalrevenueproductofcapitalinputsdoesnotprovidecompleteinformationabout
optimalusebecausecapitalis:
A) money.
B) notaninput.
C) anoutputaswellasaninput.
D) durable.
E) alloftheabove
Answer: D
Diff:1
Sec

Chapter1 Preliminaries
1) Microeconomicsisthebranchofeconomicsthatdealswithwhichofthefollowingtopics?
A) Thebehaviorofindividualconsumers
B) Unemploymentandinterestrates
C) Thebehaviorofindividualfirmsandinvestors
D) BandC
E) AandC
Answer: E
Diff:1
Sectio

Chapter4 IndividualandMarketDemand
1) Aswemovedownwardalongademandcurveforapples,
A) consumerwell-beingdecreases.
B) themarginalutilityofapplesdecreases.
C) themarginalutilityofapplesincreases.
D) BothAandBaretrue.
E) BothAandCaretrue.
Answer: B
Diff:1
Se

Chapter11 PricingwithMarketPower
1) Whichofthefollowingstrategiesareusedbybusinessfirmstocaptureconsumersurplus?
A) Pricediscrimination
B) Bundling
C) Two-parttariffs
D) alloftheabove
Answer: D
Diff:1
Section: 11.1
2) Ratherthanchargingasinglepricetoallcu

Chapter13 GameTheoryandCompetitiveStrategy
1) Whichofthefollowingconditions,ifpresent,issufficienttomakeagamecooperative?
A) Individualpayoffsaregreaterifallplayerschoosethesamestrategy.
B) Playerscancommunicatewitheachother.
C) Playerscannegotiatebinding

Chapter10 MarketPower:MonopolyandMonopsony
1) Whenthedemandcurveisdownwardsloping,marginalrevenueis
A) equaltoprice.
B) equaltoaveragerevenue.
C) lessthanprice.
D) morethanprice.
Answer: C
Diff:1
Section: 10.1
2) Forthemonopolistshownbelow,theprofitmaximi

Chapter17 MarketswithAsymmetricInformation
1) Usedcarssellformuchlessthannewcarsbecause
A) ofimperfectcompetitionintheautomobileindustry.
B) buyersknowmuchmoreaboutthequalityofusedcarsthansellersdo.
C) sellersknowmuchmoreaboutthequalityofusedcarsthanbuyer

Chapter16 GeneralEquilibriumandEconomicEfficiency
1) WhichoftheseisNOTanexerciseingeneralequilibriumanalysis?
A) Adiscussionoffactorswithinthewheatmarketthatinfluencewheatprices
B) Ananalysisoftheeffectsofchangesinoilpricesuponthenaturalgasmarket
C) Aneva

Chapter18 ExternalitiesandPublicGoods
1) Externalities
A) arenotreflectedinmarketprices,sotheycanbeasourceofeconomicinefficiency.
B) dobecomereflectedinmarketprices,sotheycanbeasourceofeconomicinefficiency.
C) arenotreflectedinmarketprices,sotheydonotadve

Chapter12 MonopolisticCompetitionandOligopoly
1) Forwhichofthefollowingmarketstructuresisitassumedthattherearebarrierstoentry?
A) Perfectcompetition
B) Monopolisticcompetition
C) Monopoly
D) alloftheabove
E) BandConly
Answer: C
Diff:1
Section: 12.1
2) Use

Reading on Game Theory Focal Points
Selected by Seung-gyu Jo
NUS Business School
Mission Impossible:
In Search of Strangers in New York City
How Game Theory Can Make Seemingly Impossible Challenges Simple
March 16, 2006
New York City is a colossal urban b

Reading on Game Theory Price War
Selected by Seung-gyu Jo
NUS Business School
OCT 4, 2002
A Fruit Price War in Singapore
After five days of intense battle
Fruit price war comes to an end
At two Ang Mo Kio shops, customers have been queuing to buy fruits w

BSP1005 Managerial Economics
Case 4 Chicken Game in Semiconductor Industry Rivalry
Created by Jo Seung-gyu
Case 4:
Chicken Game in Semiconductor Industry Rivalry
S. Korea emerges victor in semiconductor industrys
chicken game
First Draft: 2012.01.05 17:39

Exercises
(To be discussed in Week 9s tutorial)
1. The "CRUSOE NEWS" is the only daily newspaper in the island of Mas a
Tierra. The newspaper's demand curve is Q = 200-2P, where P is the price of the
newspaper (measured in cents) and Q is daily circulatio

Short Answers to Problem Sets
HW1
1 a.
b.
c.
Shortage = 1080 rides per day
d.
No. The bus company has no incentive to supply more than 10800 rides per day.
2.
a. Drawing two curves based on two different utility levels.
b.
Slope =-2
c. X=16.67, Y= 66.67
d

BSP1005 Managerial Economics
Semester II, AY2016-2017
Lecture Notes 5
A Snapshot into Behavioral Economics
(Lecture by Jo Seung-gyu)
1
Textbook Chapter:
Ch5
(Our lecture notes are more comprehensive, though.)
Readings
Prospect Theory and Economics
Nudge

Semester II, AY2016-2017
NUS Business School
BSP1005 Managerial Economics
Lecture Notes 11
GAME THEORY AND STRATEGIC THINKING I:
Introduction and Game Theory in Static Settings
By Jo Seung-Gyu
1
Textbook
Ch13
(For game theory part, my notes are more comp