ECON3P21
Midterm Test II, 2014 Winter
Brock University, Department of Economics
Brock University
Midterm Test II, Winter 2013-14
ECON 3P21
Professor: L. Sun
Duration: 1 hour 30 minutes (90 minutes).
Aids allowed:
A Nonprogrammable Calculator.
Instructions
ECON 3P21
Problem Set 2- Solution, Winter 2015-16
Brock University
Department of Economics
Problem Set 2: Market Equilibrium II- Solution
1. (a) With free entry, the price in the long run is equal to the minimum of AC. To
nd the minimum of AC, we set AC e
ECON 3P21
Problem Set 2, Winter 2015-16
Brock University
Department of Economics
Problem Set 2: Market Equilibrium-II
Due day: Wednesday, January 20, 2016, in class.
1. Suppose the daily demand function for pizza in St. Catharines is Qd = 1525 5P .
The va
ECON 3P21
Problem Set 1- Solution, Winter 2015-16
Brock University
Department of Economics
Problem Set 1: Market Equilibrium - Solution
1.
0
if P 4
0
if P 6
Qd =
Amy
10 2.5P if P < 4
9 1.5P if P < 6
0
if P 6
d
QM arket =
9 1.5P if 4 P < 6
19 4P if P < 4
ECON 3P21
Problem Set 1, Winter 2015-16
Brock University
Department of Economics
Problem Set 1: Market Equilibrium
Due day: Wednesday, Jan 13, 2016, in class.
1. Jennifers demand function for ice cream cones is Qd
Jenn = 10 2.5P at prices below
$4 and zer
ECON 3P21
Problem Set 3- Solution, Winter 2015-16
Brock University
Department of Economics
Problem Set 3: Efficiency and Market Interventions - Solution
%P%
%
%
5.25%
%
S%
CS%
%
3%
%
PS%
D%
%
1.2%
%
%
9%
21% Q%
Figure%Q1(a)%
%
%
%
1. (a) The first step is
ECON 3P21
Problem Set 4, Winter 2015-16
Brock University
Department of Economics
Problem Set 4: Market Interventions & Monopoly and Pricing Strategies
Due day: February 3, 2016, in class.
1. Consider a small open economy. The domestic market demand functi
ECON 3P21
Problem Set 5- Solution, Winter 2015-16
Brock University
Department of Economics
Problem Set 5:
Monopoly and Pricing Strategies - Solution
1. A profit-maximizing monopolist will choose an aggregate output where aggregate
marginal revenue is equa
ECON 3P21
Problem Set 4 - Solution, Winter 2015-16
Brock University
Department of Economics
Problem Set 4: Market Interventions & Monopoly and Pricing StrategiesSolution
1. (a) The goods are traded at the world price P w = 4. The total domestic demand is
ECON 3P21
Problem Set 6, Winter 2015-16
Brock University
Department of Economics
Problem Set 6: Game Theory I
You dont have to turn in this problem set.
1. (Nash Equilibrium) What is the Nash Equilibrium of the game described by the
following payoff matri
ECON 3P21
Problem Set 5, Winter 2015-16
Brock University
Department of Economics
Problem Set 5: Monopoly and Pricing Strategies
Due day: Wednesday Feb 10, 2016, in class.
1. Suppose the market demand can be separated into two distinct markets, where P1 =
Game Theory IV
L. Sun
November 12, 2015
1/1
Learning Objectives
1. Stackelberg Model.
2. Dominant Firm Model.
2/1
Stackelberg Duopoly Model
All the same as in the Cournot Duopoly model, except that
rm 1 chooses its output rst. The timing of the game is as
Game Theory IV
October 22, 2015
1
Learning Objec;ve
Price Compe;on with Homogeneous
Products: the Bertrands model
Price Compe;on with Dieren;ated
Products
2
Bertrands Model of Oligopoly
Two rms produce ide
Game Theory II
L. Sun
Oct 8, 2015
1
Example: the Prisoner's Dilemma
DescripDon of the game:
Suspect 1 and Suspect 2 are two suspects in a
major crime
They are held in separate cells.they can not
communicate
ECON3P21
Midterm Test II -Solution, Winter 2014
Brock University, Department of Economics
Q1 [Cournots and Stackelbergs Model of Oligopoly][20 marks]
(a) (4 marks) The inverse demand curve is
1
1
P = 200 Q = 200 (q1 + q2 )
2
2
where q1 and q2 are the outp
ECON3P21
Midterm Test I, Winter 2014
Brock University, Department of Economics
Brock University
Midterm Test I, Winter 2013-14
ECON 3P21
Professor: L. Sun
Duration: 1 hour 30 minutes (90 minutes).
Aids allowed:
A Nonprogrammable Calculator.
Instructions
Math Review for ECON3P211
L. Sun
January 6, 2014
1
This is a brief review of some of the mathematical concepts that are used
in this course. Reference: Hal R. Varian Intermediate Microeconomics: A
Modern Approach, eighth edition, W.W. Norton & Company.
Ro
1. Consider competitive product and factor markets. Answer the following questions:
a) Explain why the short-run labour demand of a firm is given by the VMP (value of
marginal product) curve. State the underlying assumption for VMP to be the firm's
labour
Market Interventions
L. Sun
September 17, 2015
1/1
Learning Objectives
1. Describe the eects of a tax or subsidy in a competitive
market.
2. Understand and compare policies designed to raise prices
(price oors, price supports, production quotas and volunt
Competitive Equilibrium
L. Sun
September 10, 2015
1/1
Learning Objectives
1. Identify the factors that make a market perfectly competitive
2. Derive market demand/market supply function from individual
demand/supply functions
3. SR and LR competitive equi
Eciency of Perfectly Competitive Markets
L. Sun
September 17, 2015
1/8
Learning Objectives
Understand and identify the following economic concepts:
1. Aggregate Surplus (AS)
2. Consumer Surplus (CS)
3. Producer Surplus (PS)
4. Dead Weight Loss (DWL)
2/8
A
Monopoly and Price Discrimination
L. Sun
October 1, 2015
Learning Objectives
1. Perfect price discrimination.
2. Ordinary price discrimination.
Price Discrimination and Market Segmentation
All price discrimination schemes share an underlying strategy:
to
Monopoly and Pricing Strategies
L. Sun
September 24, 2015
1/1
Learning Objectives
1. Monopoly and monopoly pricing.
2. Price discrimination.
Perfect price discrimination
Two-part tari
2/1
Market Power
A rm has market power when it can protably charge a pr
ECON 3P21
Problem Set 6 - Solution, Winter 2015-16
Brock University
Department of Economics
Problem Set 6: Game Theory I - Solution
1. (a) NE: (M,L) and (B,R)
(b) NE: (T,L)
2. We can use the following table to represent the game:
1
2
Paul 3
4
5
1
(1, 1)
(