Mount Holyoke College
Economics 212 Microeconomic Theory
Spring 2013
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Prerequisites :
The course prerequisites are Economics 103, Economics 104 and Mathematics 101 (or successful
completion of equivalent classes). Before taking this course, students shou
Problem Set 1
Math Review
Spring 2013
Economics 212
This problem set provides some calculus review, with a focus on the functions that are commonly used in microeconomic theory (polynomials, exponentials, logarithms). Your score will not affect your cours
7. Income and Substitution
Effects
Varian, Chapter 8.
Decomposing the price change
Good X has a price pX = p; good Y has pY = 1
A reduction in p has two effects:
- it makes good X relatively less expensive
- it raises purchasing power
The total change
Mount Holyoke College
Econ 212: Microeconomic Theory
Katherine Schmeiser
Common Derivatives
Multiple ways to denote a derivative:
If y = f (x) a derivative may be written as:
dy df (x)
,
, f (x)
dx dx
In class I will typically (though not always) write f
Linh Le
Econ 212
Exam 1 Practice Problem
Robin likes wearing sweaters and pants in the winter. The price of a pair of pants is
pp = 20, the price of a sweater is ps = 16, her income is m = 160. Robins pr
CHAPTER 22: FIRM SUPPLY
How does a firm decide how much product to supply? This depends upon
the firms
technology
market environment
goals
competitors behaviors
22.1. Market environments:
Are the
CHAPTER 2
BUDGET CONSTRAINT
Economists assume that consumers choose the best bundle of goods they can
afford
This chapter examines how to describe what a consumer can afford
2.1. The budget constraint
p1x1 + p2x2
CHAPTER 5: CHOICE
Consumers choose the most preferred bundle from their budget sets
5.1. Optimal choice
The choice (x1*, x2*) is an optimal choice for the consumer.
- Bundles above the budget line: cant afford
Chapter 18 Technology
Inputs and outputs.
Factors of production:
land, labor, capital,
raw materials,
and so on.
A production set
Examples of technology (isoquants analysis):
l
Chapter 24 Monopoly
When there is only a single firm in an industry, we say that it is a monopoly.
I. Maximizing profit
A monopolist operates at a point where marginal revenue equals marginal cost.
Hence a mon
CHAPTER 32: PRODUCTION
The general equilibrium framework can be extended by allowing competitive,
profit-
maximizing firms to produce goods destined for exchange in the economy.
32.1. The Robinson Crusoe Economy
Mount Holyoke College
Econ 212: Microeconomic Theory
Fall Semester 2014
Monday, Wednesday 01:15PM - 02:30PM, Cleveland, Room 001L
Katherine Schmeiser
Email: [email protected]
Oce: 118 Skinner Hall
Oce Hours: Monday and Wednesday 9:00-10:00am and by a