Managerial Economics
SOLUTION - Tutorial 9
Solve Problems Chapter 14: 14.3, 14.5
P14.3
SOLUTION
A.
Yes, the dominant strategy for firm A is up. Notice that if firm B chooses left, the
highest payoff o
The supply curve of a single firm under perfect competition is that portion of the MC curve
above the minimum point of the AVC curve. How about the supply curve of the
monopolist? Does the monopolist
ECF2731/5927 - Managerial Economics
Solutions - Problem sets - Tutorial 4
P7.4 SOLUTION
A.
Initially, let X = Y = Z = 100, so output is:
Q = 0.5(100) + 2(100) + 40(100) = 4,250
Increasing all inputs b
ECF2731Managerial Economics
Solutions - Tutorial 4
Based on Lecture 4
A.
B.
C.
P4.8
SOLUTION
A.
EI =
Q I2 + I1
I Q2 + Q1
50 - 30
$58,500 + $55,500
$58,500 - $55,500
50 + 30
= 9.5
=
B.
Without a pric
ECF2731/5927 Managerial Economics
Solutions - Tutorial 3
P3.10
SOLUTION
A.
When quantity is expressed as a function of price, the demand curve for
Eye-de-ho Potatoes is:
QD = -1,450 - 25P + 12.5PW + 0
ECF2731/5927 Managerial Economics
P2.7
SOLUTION
A.
Set MR = MC and solve for Q to find the profit-maximizing activity level:
MR = MC
$1,500 = $500 + $0.01Q
0.01Q = $1,000
Q = 100,000
This is a profit
ECF2731/ECF5927 Managerial Economics
Lectures 8 and 9: Monopolistic Competition & Oligopoly
1/1
Outline
Lecture objectives:
I
I
Monopolistic Competition
Oligopoly
I
I
I
Oligopoly Output-Setting Models
ECF2731/ECF5927 Managerial Economics
Lecture 10: Game Theory
1 / 28
Outline
Lecture objectives:
I
Game Theory Introduction
I
Prisoners Dilemma
I
Nash Equilibrium
I
Infinitely Repeated Games
I
Finitely
ECF2731/ECF5927 Managerial Economics
Lecture 11: Risk Analysis
1 / 23
Outline
Lecture objectives:
I
Concepts of Risk and Uncertainty
I
Probability Concepts
I
Utility Theory and Risk Analysis
I
Adjusti
Mid-semester Exam
ECB2731 Managerial Economics
Time allowed: 60 minutes
DO NOT BEGIN THE EXAM UNTIL INSTRUCTED.
MAKE SURE YOU ARE NOT SITTING NEXT TO ANYONE WITH THE
SAME NUMBER EXAM PAPER.
There are
MONASH
BUSINES
S
SCHOOL
ECB2731 Managerial
Economics
Week 3, Semester 2 2017
MONASH
BUSINES
S
SCHOOL
Elasticity
Learning objectives
Understand the concepts of own-price elasticity, income
elasticity,
ECB 2731 Managerial Economics
Tutorial - Week 11
Questions for Group Discussion
1. What is the possible free rider problem in the following context? Saturn City lies two
miles off a busy highway. The
1.) According to the five forces of the Porter's model, the organization of an industry can be
analyzed in terms of its structure, conduct and performance. Discuss
ANSWER: the structure of an industry
ECF2731Managerial Economics
Solutions - Tutorial 4
Based on Lecture 4
Based on Lecture 4 P4.4 with small adaptation
Budget Constraints, Income and Substitution Effect. Holding all else equal, indicate
ECF2731Managerial Economics
Solutions - Tutorial 3
P3.9
A.
SOLUTION
Each company will supply output to the point where MR = MC. Because P = MR in
this market, the supply curve for each firm can be wri
ECF2731/5927 Managerial Economics
Solutions - Tutorial 6
P11.4
SOLUTION
A.
The market supply curve is given by the equation
QS = -10 + 2P
or, solving for price,
2P = 10 + QS
P = $5 + $0.5QS
The market
ECF2731Managerial Economics
Based on Lecture 2
P2.7
SOLUTION
A.
Set MR = MC and solve for Q to find the profit-maximizing activity level:
MR = MC
$1,500 = $500 + $0.01Q
0.01Q = $1,000
Q = 100,000
This
ECF2731 Managerial Economics
Problem sets - Tutorial 1
Based on Lecture 1
Q1.4
In the wake of corporate scandals at Enron, Tyco, and WorldCom, some argue
that managers of large, publicly owned firms s
ECF2731/5927 Managerial Economics
Solutions - Tutorial 5
P10.3
SOLUTION
A.
The marginal cost curve constitutes the short-run supply curve for firms in perfectly
competitive markets if price exceeds av