Midterm: Suggested
Solutions
March 15, 2007
Time: 70 min
20 percent of overall grade. Please, prove and interpret answers when
necessary.
Honor code. On my honor, as a University of Colorado at Boulder student, I have neither given nor received unauthoriz
Returns to scale and Marginal Cost
March 13, 2007
Example 1 F (L, K) = min cfw_L, K . Optimal input combination to produce Q
units of output: .L = K = Q. Cost function: wL + rK = Q (w + r) = C (Q) .
Marginal cost is constant, M C (Q) = w + r > 0.
7
Exampl
HW 5
Solutions
April 13, 2007
Problem 1 Suppose Adam and Eve are the only individuals in the economy
(a small island). Adam brings 6 pheasants (x) and Eve brings 6 buckets of
apples (y) to the evening re. Their preferences are represented by the same
util
Intermediate Microeconomic
Theory
Final Exam
Spring 2006
Time: 2.5 hr
30 percent of overall grade. Please prove and
interpret your answers
May 2, 2006
NAME:
Signature
DATE:
Honor code. On my honor, as a University of Colorado at Boulder student, I have ne
More problems to practice for your nal exam1
Problem 1 Two rms are producing an identical product. Total cost of each
rm is
1 2
T Ci (qi ) = qi
(1)
2
with the corresponding marginal costs being
MCi (qi ) = qi .
(2)
The (inverse) market demand faced by the
Intermediate Microeconomic Theory
Mid-semester examination solution
Spring 2006, March 9
Time: 70 minutes
20 percent of overall grade. Please prove & interpret answers when necessary.
NAME:
SIGNATURE:
DATE:
Honor code. On my honor, as a University of Colo
More problems to practice for your nal exam1
(The rst two problems were solved in class, the last problem is solved
below.)
Problem 1 Two rms are producing an identical product. Total cost of each
rm is
1 2
T Ci (qi ) = qi
(1)
2
with the corresponding mar
Plan
Producer Theory
b Production function
b Fixed and Variable Inputs
b Production in the long run
marginal rate of technical substitution
returns to scale in production
Production Technology
b Production in the short run
law of diminishing returns
t
Sample
final
Name _
1. A monopoly market is one with
a.
b.
c.
d.
one buyer and one seller.
one buyer and many sellers.
many buyers and one seller.
many buyers and many sellers.
2. The inverse elasticity pricing rule tells us the monopolist's
optimal mark-
Plan
Public Goods and Free rider
problem
4 Can Markets Allocate Public Goods
Efficiently?
Samuelsons Condition for Efficient Provision
of Public Goods
A Market for Apples
A Market for Parks
4 The Free rider problem
4 Developing formal tools: definition
Sample
test
Name _
1. The assumption that preferences are transitive requires the consumer
a. to rank any two baskets.
b. to say that basket C is preferred to basket A if basket B
is preferred to basket A and basket C is preferred to basket
B.
c. to rank