Class Problem in Preparation for Exam 1
A power plant can produce electricity using natural gas or fuel oil, or a combination of the two.
In particular, its production function for electricity is given by
where is E is the output of electricity, G in the
| Utility Maximization and Instantaneous Calculations.
LECTURE 7
UTILITY MAXIMIZATION
Utility Maximization: How plausible ?
9 It seems implausible that people are conscious utility maximizers.
AND
For most type of purchases, people do not solve complicate
4.2. SINGLE-INPUT COST FUNCTIONS.
LECTURE 4
PROFIT MAXIMIZATION:
When a firm has only a single input, x, its total costs are given by
SINGLE-INPUT FIRMS
where w is the per unit cost of the input.
4.1. INTRODUCTION.
Observation:
How do production functions
(c)
LECTURE 3
A Behavioral Assumption About the Management:
That is, whether the firms management maximizes profits or
something else.
PRODUCTION FUNCTIONS
Elements (b) and (c) form the supply side of these models.
3.1. INTRODUCTION.
We have seen a number
LECTURE 1
OPTIMIZATION AND CALCULUS
1.1. OPTIMIZATION-BASED ECONOMICS.
| How Does Calculus Made its Way into Economics.
Not all math we use in this course is calculus, but much of it is.
Before we review calculus, it is useful to understand why thats the
SOLUTIONS TO ADDITIONAL PRACTICE PROBLEMS - LECTURE 2
1. A firm has production function
where L is the labor hired and M is the amount of material inputs used. The price of the materials
is 1, while the per unit cost of labor (wage) is equal to w. The fir
SOLUTIONS TO ADDITIONAL PRACTICE PROBLEMS - LECTURE 1
1. A firm is contemplating a national advertizing campaign by airing television commercials on a
papular network series. The per minute cost of advertising on this series is 1 million dollars, and
the
Econ. 300
George Deltas
Intermediate Microeconomics
Spring 2004
EXAM 2 - SOLUTIONS
FIRST NAME _
LAST NAME _
SECTION ENROLLED IN: _
SECTION ATTENDED: _
Write all answers on the exam. Use the back side of the exam as scratch paper.
No calculators are allowe
Econ. 300
George Deltas
Intermediate Microeconomics
Spring 2004
EXAM 1- SOLUTIONS
FIRST NAME _
LAST NAME _
Write all answers on the exam. Use the back side of the exam as scratch paper.
No calculators are allowed.
TRUE/FALSE QUESTIONS. (3 points each)
Fal
Solutions to Class Problem in Preparation for Exam 1
A power plant can produce electricity using natural gas or fuel oil, or a combination of the two.
In particular, its production function for electricity is given by
where is E is the output of electrici