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 wri
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
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 ch
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=
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
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
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 Incom
Equilibrium concepts
Concept 1
Nash equilibrium A Nash equilibrium set of strategies is a set of strategies where no player wants to
change his strategy (i.e. she cannot increase her payoff by choosin
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,
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
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
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 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
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
t
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
CHAPTER 11: MONOPOLY AND MONOPSONY
Monopoly = only supplier of a good that has no close substitute
A monopoly can set its price it is not a price-taker like competitive firms.
Monopolys output = marke
CHAPTER 12: ADVERTISING AND PRICING
Switchers = customers who buy whichever brand is least expensive
12.1. CONDITIONS FOR PRICE DISCRIMINATION
Firms sometimes use nonuniform pricing, where a firm char
CHAPTER 13: GAME THEORY
OVERVIEW OF GAME THEORY
Game theory is a set of tools used by economists and many others to analyze players strategic
decision making. A game is an interaction between players
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
T
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 th
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. T
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 recei
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 (E
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 maxi
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 cours
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 t