Problem set 6
1. One possible method of determining a social preference relation is the Borda
count, also known as rank-order voting. Each voter is asked to rank all of the
alternatives. If there are 10 alternativ

Problem set 7
1. Charlie Plopp sells used construction equipment in a quiet Oklahoma town. He
has run short of cash and needs to raise money quickly by selling an old
bulldozer. If he doesnt sell his bulldozer t

Problem set 2.
1. Compute the MRS for the following utility functions
a. u(x1, x2)= 2x1 + 3x2
!/! !/!
b. ! , ! = 3! !
!/!
c. ! , ! = ! + !
2. Show that the utility function ! , ! = ! +!
represents the same pref

Problem set 4.
1. Consider an economy with two consumers A and B and two goods x1 and
x2.
For each consumer we have the following information
a. Consumer A: ! , ! = ! , ! , wA=(7, 1)
b. Consumer B: ! , ! =

Problem set 3.
1. For the following utility functions, compute the optimal demand for each
good
!/! !/!
a. ! , ! = ! !
!/! !/!
b. ! , ! = ! !
c. ! , ! = ! +2!
d. ! , ! = 3! +!
e. ! , ! = !
f. ! , ! = !
g. ! , ! =

Problem set 1.
1. Consider a group of people A, B and C and the relation at least as tall as,
as in A is as tall as B. Is this relation transitive? Is it complete?
2. Take the same group of people and consid

SECTION A: COMPULSORY (May 2013 Exam)
John Lewis staff celebrate bonus of nine weeks' pay: Retailer says staff
will all receive bonus worth 17% of salary
John Lewis and Waitrose staff gather to hear the partnership's financial results. Photograph:
David L

Ming Chung
Econ 305
Problem set 3
1. F(L,K)=2K^2+L^2
F(tL,tK)=2t^2*K*2+t^2*L^2=t^2(2K^2+L^2)=t^2f(L,K)> tf(L,K)
Thus, increasing Returns to Scale
2. Optimal inputs
The firm seeks to produce q=50, w=3 and r=5
(a). MRTs is given by;
MPK=dq/dk=0.8K^-0.2L^0.2

Tutorial Question 2
1: Consider an exchange economy with 2 individuals (A and B lets say) and 2 goods. Suppose that
there is a transfer of initial endowments from B to A. Then does A get better off in competitive
equilibrium in the market run after the en

Sample in-course exam 2
1. An individual has preference represented in the form u(1 , 2 ) = 21 + 2
1.1 Find the marginal utility of Good 1. Find the marginal utility of Good 2
1.2 Find the marginal rate of substitution
1.3 Suppose the price of Good 1 is 3

Sample in-course exam
Disclaimer: Naturally this is just for giving you an idea about what forms of questions
are being asked, and it has nothing to say about which topics are being asked in the
actual exam.
Section A: Choose one from the following two.
1

MICROECONOMIC ANALYSIS: CONSUMER, PRODUCER AND GENERAL
EQUILIBRIUM
COURSE CODE: ECON4020
CREDITS: 15
2014-2015
SEMESTER ONE
COURSE COORDINATOR AND LECTURER: PROF TAKASHI HAYASHI
Course aims
The main aims of this course are to:
1.
2.
3.
4.
5.
To provide st

Microeconomic Analysis: General Equilibrium and Welfare
Lecture 7
1
Cost curve analysis
From now on take the cost function as given,
C(y) = V C(y) + F C
where VC refers to variable cost and FC refers to fixed cost
Average cost AC(y) = C(y)
y
Average va

Microeconomic Analysis: General Equilibrium and Welfare
Lecture 2
1
Chapter 3 So-called utility function
3.1 Utility representation of preference
Preference should be the sucient information.
need utility representation?
Why do we
1. Can describe rationa

Problem set 5.
1. Consider an economy with two consumers and a total initial endowment
w=(2, 2)
a. Give an example of one allocation that is non-efficient and envious
when the utility functions are ! ! , ! = ! + !