1. We start by solving the consumer optimisation problem for individual of
type A:
1=2 1=2
M axxA ;yA U A
subject to RA
= xA yA
= px xA + py yA
If I solve this using the substitution method, I can write that
RA
xA =
py y A
px
and the optimisation problem
Problem Set #1 - General Equilibrium with
Exchange
November 22, 2011
Problem 1 Consider an exchange economy, with two goods, x and y, and two
individuals, A and B. Let
UA
0:5
= x0:5 yA
A
UB
= xB yB
1=3 1=3
where xA ; xB ; yA; yB denote the consumptions of
Problem Set #2 - General Equilibrium with
Production
November 25, 2011
Problem 1 Suppose two individuals (Smith and Jones) each have 10 hours of
labor to devote to producing either ice cream (x) or chicken soup (y). Smith
s
utility function is given by:
U
UNIVERSITY OF OTTAWA
Department of Economics
ECO 2145A
Fall 2014
Dr. M. Rafiquzzaman
Problem set # 1
Solution
_
1.
P = 600 26Q;
TC = 600Q 40Q 2 + Q 3
(a) Profit maximizing condition: MR = MC
From the demand equation, total revenue (TR) = PQ = (600 26Q)Q =
Student Name_
Student Number_
Department of Economics
University of Ottawa
ECO2145
Microeconomic Theory I
Midterm 1
(Version 2)
P Brochu
Winter 2013
Instructions:
1. Print your name and student number at the top of this exam.
2. Each multiple choice is wo
Review/Practice Question Set 1: Exch Rate & GDP
Table of Contents
Review/Practice Question Set 1 .1
The Global Macro-Exchange Rate Review/Practice Questions & Answers .1
National & International Income Accounts Review/Practice Questions & Answers .3
*
The
unmark- tum. t. I
Département de science économique
uttttnw; Department of Economics
ECOII-SA TEST # 2 TIME: 70 minutes November 13, 2014
Professor: M. Raquzmman Full 2014
Multiple choice (3x5 = 15. Please write your answer in the booklet)
l. The deman
UNIVERSITY OF OTTAWA
Department of Economics
ECO 2145B
Winter 2014
Dr. M. Rafiquzzaman
Problem set # 1
Solution
_
1.
P = 600 26Q;
TC = 600Q 40Q 2 + Q 3
(a) Profit maximizing condition: MR = MC
From the demand equation, total revenue (TR) = PQ = (600 26Q)Q
UNIVERSITY OF OTTAWA
Department of Economics, ECO2145B
M. Rafiquzzaman
Problem set # 1
Winter Term 2014
_
1.
A monopolist=s demand curve is P = 600 -26Q (in inverse form), while its cost function is
TC = 600Q - 40Q2 + Q3.
a. Find the unregulated price and
UNIVERSITY OF OTTAWA
Department of Economics, ECO2145B
M. Rafiquzzaman
Problem set # 2
Winter Term 2014
_
1.
Assume that a firm is a monopolist selling the amounts Q1 and Q2 of the same product in
two different markets, in which it is capable of practicin
UNIVERSITY OF OTTAWA
Department of Economics, ECO2145A
Dr. M. Rafiquzzaman
Problem set # 1
Fall Term 2014
_
1.
A monopolist=s demand curve is P = 600 -26Q (in inverse form), while its cost function
is TC = 600Q - 40Q2 + Q3.
a. Find the unregulated price a
Chapter 9: Practice problem solution.
q*
2.3 (p. 321) PS = Area above the supply curve bounded by price = p*q* -
p * (q )dq .
0
1
q
q
Given q = ap * p * = p* =
a
a
ap *
1 +1
ap *
1 q
q
Then, PS = p * ap * dq = ap * +1 1
1
a
0
a + 1
0
1
= ap
UNIVERSITY OF OTTAWA
Department of Economics, ECO2145A
Dr. M. Rafiquzzaman
Problem set # 2
Fall Term 2014
_
1.
Assume that a firm is a monopolist selling the amounts Q1 and Q2 of the same product in
two different markets, in which it is capable of practic
1
Chapter 14 - Suggested Core Problems - cournot related only
Problem # 1:
Given that the total demand is P = 10 Q, where Q is total industry output (i.e. Q = Q1 + Q2 ). Assume
that firm 1s cost structure is C1 (Q1 ) = Q1 , and firm 2s cost structure is C
UNIVERSITY OF OTTAWA
Department of Economics, ECO2145A
Dr. M. Rafiquzzaman
Problem set # 3
Fall Term 2014
_
1. Assume that two companies (A and B) are duopolists who produce identical products.
Demand for products is given by the following linear demand f
UNIVERSITY OF OTTAWA
Department of Economics
ECO 2145A
Fall 2014
Dr. M. Rafiquzzaman
Problem set # 2
Solution
_
1.
Given:
Demand in market1: P 60 15Q1 ; demand in market 2: P2 30 12Q2
1
dC
12
Total cost C 27 12Q (where Q Q1 Q2 ) MC
dQ
(a) Price discrimi
UNIVERSITY OF OTTAWA
Department of Economics
ECO 2145B
Winter 2014
Dr. M. Rafiquzzaman
Problem set # 2
Solution
_
1.
Given:
Demand in market1: P = 60 15Q1 ; demand in market 2: P2 = 30 12Q2
1
dC
Total cost C = 27 + 12Q (where Q = Q1 + Q2 ) MC =
= 12
dQ
(a
Chapter 12: Text Book Practice Problem on Non-Linear Pricing Solution
4.2 (p. 442, Text book)
Setting marginal revenue equal to marginal cost yields Q* = 30, p* = 60. Profit is $900, consumer
surplus is $450, welfare is $1,350(PS + CS), and deadweight los
ECO2145 NOTES
CHAPTER 12 PRICE DISCRIMINATION
12.1 WHY AND HOW FIRMS PRICE DISCRIMINATE
Many non-competitive firms increase their profits by charging non-uniform prices, which vary
across customers. The most common form of non-uniform pricing is price dis
15-11-02
Chapter 16: General Equilibrium
Theory
1
And Now For Something Completely
Dierent!
In Micro I, and in Micro II so far, you have studied
individual markets in isolaNon. The market for coee,
the market
11
Monopoly
U Vic
ot n
iv tor
fo e i
r S rs a
ity Ba
al
e of rh
or O am
D tta
up w
lic a
at
io
n
Monopoly: one parrot.
Challenge
N
Brand-Name and
Generic Drugs
A firm that creates a new drug may receive a patent that gives it the right to be the
monopoly
ECO2145 Microeconomic Theory II
Professor Vicky Barham
Oce: FSS9026
Oce hours: Mondays, 1:00 2:00, or by
appointment
E-mail: [email protected]
12 September (English); 13 September (French):
Math boot camp
Step 1: Solve for consumer demands.
for worker : max xA , yA U A =x yA
A
subject to RA px xA + py yA
(1)
(2)
(3)
From budget constraint:
yA =
RA px xA
.
py
Substitute into objective function, and maximize with respect to xA :
A
max U = (xA )
xA
RA px xA
p
15-11-19
Chapter Sixteen: Uncertainty
3
Lo8eries and Probabili>es
In many economic seAngs, there is
uncertainty with respect to the payo
associated with a specic course of ac>on.
Classic example: stock market
1. Observe that there are constant returns to scale in production, that is, the
rm prot maximisation problem is:
s
x
= px x wlx
= 2px lx wlx
= (2px w)lx
d x
dlx
=
2px
w = 0 , px =
w
2
Similarly, for the rm producing good y,
d y
= 3py
dly
w = 0 , py =
w
3
Gabriel Desgranges
Master "Economics and Finance", 2009-2010
Problem Set: General Equilibrium
I - Edgeworth Boxes
Dene your own economy with 2 agents i = A; B and 2 goods l = 1; 2.
Choose 2 utility functions among the following ones:
Cobb-Douglas ui (xi )
1
Chapter 12 - Suggested Problems
Core Problems
Problem # 1:
Assume that the individual demand is P = 10 Q, and that the total cost is C(Q) = Q.
Calculate the optimal pricing strategy, quantity sold, and producer surplus under
a) (one price) monopolist
b)