For Final Exam
A to B: Shift in demand causes new price P2. Quantity produced by firm cannot be adjusted in Very Short Run, nor can # of firms be adjusted. B to C: At the firm level, each firm adjusts labor and prod
Maximize Total Revenue minus Total Cost max PQ-LTC(Q,w,r) Q FOC: Q* solves:
P = LTC(Q, w, r)/Q
Solution function is Q*(P,w,r)
Homogeneous commodity Large number of firms:
(Each firm assumes its actions have no effect on market price)
Free entry in long run Perfect information
Prices known by all
For Midterm 2
A. Yes B. No C. Not sure
max U(x1, x2) s.t. p1x1 + p2x2= I F.O.C.s MU1/MU2 = p1/p2 p1x1 + p2x2= I
Elasticity expresses the % change in c
REVIEW SESSION FOR MIDTERM 2: CHEM 1179, Sat. 11/14/09, 12:00P-2:00P Extra O.H posted on Webpage You can attend any T.A.s O.H. No Wednesday section on Vets Day
Students with Wednesday section may attend other
A. True B. False C. Cant tell
Question2:AfirmsproductionfunctionisF(L,K)=LK.It currentlyuses6unitsofLand3ofK.Whichwouldgiveit moreadditionalproduction:
A. 1 unit of labor (L)
Initially, the person below is:
A. Saver B. Borrower C. Cant Tell
B I1 c1
Question2 The figure depicts what happens when r.
I2 A B I1
A. Rises B. Falls C. Cant Tell
Chinese exclusion act start at 1882
Whats the story?
Whats important? Why?
Study from past, maybe the story would happened again
We normal knowledge about US, that it is open to all people.