Econ 208
Akerlof
Assessed Problem Set 1
1.
Decide whether each of the following three statements is True, False, or Uncertain, and give a
brief but clear explanation why.
a)
b)
Your company lost a cou
Akerlof
Econ 208
Assessed Problem Set 2
1. Suppose Badoit and Evian are the only two suppliers of bottled water and
they engage in Bertrand competition. Neither comp
Econ 208
Akerlof
Practice Problem Set 1
1. True, False, or Uncertain: (Explain why): A firm whose marginal cost is
increasing can still be experiencing economies of scale.
2. Daily Herald, the oldest
ECON 208
Akerlof
Solutions: Practice Problem Set 1
1. TRUE
When a firm experiences economies of scale, its average cost is decreasing with
output. Economies of scale consider the average cost of produ
Akerlof
Econ 208
Practice Problem Set 2
1. Oil tankers can be produced at a marginal cost of 200 million pounds. The demand
for tankers is given by the following equation:
Qd = 10 4p,
Where Q is the n
(a)
(b)
(c)
(d)
(e)
1
2
3
xi
8
if individual is 17-25 years old
if individual is 26-40 years old
if individual is >75 years old
3
1 if in quarter j
yt 1 x1t 2 x1t 1 j Q jt t , where Q jt =
otherwise
Amina Musaeva, u1412066
Describe an instance where a technological change affected the structure of an
industry.
The telecommunications sector, through the increase in speed and capacity of its techno