Econ302 HomeworkAssignment5 DueThursdayNovember19 (Questionstobegraded:2,4,5)
1. What factors determine the amount of monopoly power an individual firm is likelytohave?Explaineachonebriefly.
2. Whyisthereasocialcosttomonopolypower? Ifthegai
Econ302 HomeworkAssignment4 DueThursdayOctober29 (QuestionsinPartIIwillbegraded)
PART I: Multiple Choice Questions P = 90 Q d . The
Suppose that a market is initially in equilibrium. The initial demand curve is
initial supply curve is P
3_2. Tammy and Tad's father has given each of them a debit card and allows each of them to use the card to spend $500 each month. Tammy and Tad use their $500 to buy only CDs and gasoline. In February, the price of a CD was $10 and the price of gasoline w
12_4.Supposethemarketfortennisshoeshasonedominantfirmandfivefringefirms. ThemarketdemandisQ=4002P.Thedominantfirmhasaconstantmarginalcostof20. ThefringefirmseachhaveamarginalcostofMC=20+5q.
b. c. d. e.
12_3. Two firms produce luxury sheepskin auto seat covers, Western Where (WW) and B.B.B.Sheep(BBBS).Eachfirmhasacostfunctiongivenby: C(q)=30q+1.5q
Themarketdemandfortheseseatcoversisrepresentedbytheinversedemandequation: P=3003Q, whereQ=q1+q2,totaloutpu
12_2.ThisexerciseisacontinuationofCh12_P1. Wereturntotwofirmswiththesame constant average and marginal cost, AC = MC = 5, facing the market demand curve Q1+Q2=53P.NowwewillusetheStackelbergmodeltoanalyzewhatwillhappenifone ofthefirmsmakesitsoutputdecision
12_1.Amonopolistcanproduceataconstantaverage(andmarginal)costofAC=MC=5. ItfacesamarketdemandcurvegivenbyQ=53P. a. b. Calculate the profitmaximizing price and quantity for this monopolist. Also calculateitsprofits. Supposeasecondfirmentersthemarket.LetQ 1b
Econ302 Homework Assignment 2 Due Sept 24 (Problems 1, 2, 3, and 4 in part II will be graded)
PART I: Multiple Choice Questions
1. For which of the following goods is the market most restricted geographically? a. b. c. d. retail gasoline. h
Econ302 HomeworkAssignment3 DueThursdayOctober15 (Questionstobegraded:1,2,and3)
1. For each of the following examples, draw a representative isoquant. What can you say about the marginal rate of technical substitution in each case?
Department of Economics University of Illinois at Urbana-Champaign Intermediate Microeconomics Section 8 Econ302 Fall 2009 _
Instructor: Email: Office: Phone: Office hours: TA: Email: Office: Phone: Office hours: Hassan Arvin-Rad [email protected] 417 D
Second Homework Assignment
The following table presents the components of demand and supply in the market for
loanable funds. The interest rate is measured as percent per year. The other variables are
denominated in billions of dol
Second Homework Assignment, Economics 120, Fall 2016
You are Marketing Manager for Regal Entertainment, the largest movie-chain company in the
United States. You know that the number of movie tickets sold by Regal (quantity demanded)
in any year depends o
First Homework Assignment
A. Consumer Surplus
Carlos and Natasha are UIC students who are buying hamburgers at McDonalds for
lunch today. The table shows their daily marginal benefit (MB) schedules for McDonalds
10_3. Homer's boat manufacturing has a monopoly on boat sales in the region. Homer's marginal cost of the 8th boat produced is $1,200. He produces only eight boats and can sell all eight boats for $1,500. The elasticity of demand at this price is -2. Is H
10_2. Hawkins Micro Brewery has a monopoly on Oatmeal Stout in the local market. 1 The demand is: QD = 100 2 P P = 50 Q. The resulting marginal revenue function 2 is MR ( Q ) = 50 Q. Hawkins marginal cost of producing Oatmeal Stout is 1 MC ( Q ) = 5 + Q.
Enterprises has developed a new product called the Gillooly Shillelagh. The market demand for this product is given as follows: Q = 240 - 4P a. At what price is the price elasticity of demand equal to zero? b. At what price is demand infinite
2_2. Midcontinent Plastics makes 80 fiberglass truck hoods per day for large truck manufacturers. Each hood sells for $500.00. Midcontinent sells all of its product to the large truck manufacturers. If the own price elasticity of demand for hoods is -0.4
3_1. Natasha derives utility from attending rock concerts (r) and from colas (c) as follows:
U(c,r) = c.9r.1 The marginal utility of cola (MUc) and the marginal utility of rock concerts (MUr) are given as follows:
MUc = .9c-.1r.1 MUr = .1c.9r-.9 a. If the
4_1. Donald derives utility from only two goods, carrots (Qc) and donuts (Qd). His utility function is as follows: U(Qc,Qd) = (Qc)(Qd) The marginal utility that Donald receives from carrots (MUc) and donuts (MUd) are given as follows: MUc = Qd a. b. c. d.
4_2. The following data pertain to products A and B, both of which are purchased by Madame X. Initially, the prices of the products and quantities consumed are:
P = $10 Q = 3 A A P = $10 Q = 7. B B
, , ,
Madame X has $100 to spend per time period. After a
6_1. Homer's boat manufacturing plant production function is y ( K , L ) = K 5 L , where K is the number of hydraulic lifts and L is the number of labor hours he employs. Does this production function exhibit increasing, decreasing or constant returns to
7_1.Afirmhasfixedproductioncostsof$5,000andaconstantmarginalcostof productionequalto$500perunitproduced. a. b. Whatisthefirmstotalcostfunction?Averagecost? Ifthefirmwantedtominimizetheaveragetotalcost,woulditchoosetobe verylargeorverysmall?Explain.
8_1.Supposethatacompetitivefirmsmarginalcostofproducingoutputqisgiven byMC(q)=3+2q.Assumethatthemarketpriceofthefirmsproductis$9. a. b. c. Whatlevelofoutputwillthefirmproduce? Whatisthefirmsproducersurplus? Supposethattheaveragevariablecostofthefirmisgive
C( q) = q3 8q2 + 30 q + 5 .
a. b. c. d. FindMC,AC,andAVCandsketchthemonagraph. Atwhatrangeofpriceswillthefirmsupplyzerooutput? Identifythefirmssupplycurveonyourgraph. Atwhatpricewouldthefirmsupplyex
D Q= 50 10 60 0P
Mktdm d ae ea r n Mkts pl a e up r y
Q= 20 10P
Assumethatallfirmsareidentical,andthatthemarketischaracterizedbypure competition. a. Findtheequilibriumprice,theequili