Homework 2
Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. _ 1. A util represents a unit of measurement for the: a. dollars a consumer spen
HOMEWORK 2
ANSWERS AND EXPLANATIONS
A util represents a unit of measurement for the: dollars a consumer spends on a good. No, that is measure with total expenditure profit a firm makes from producing
Econ 102A Problem Set 3 1.) Show graphically why a lump sum (income) tax is superior to a per unit (sales) tax. 2.) Using the same logic as in 1.) show graphically why a lump sum subsidy is superior t
Econ 102A #1) a) Budget Constraint: Px*X+Py*Y=M Budget Set: cfw_ (X,Y) | Px*X+Py*YM
Problem Set 1 Solutions
Note that I and M are the same. e) Lets look at the budget constraint. Suppose we double al
Problem Set 3 Solutions #1) Clearly, the lump sum scheme puts the consumer on a higher indifference curve than the per unit tax.
#2) Clearly, the lump sum scheme puts the consumer on a higher indiffer
Problem Set 4 Solutions Econ 102A
#1.) Consider a consumer making wage w endowed with T units of time. The consumer can divide his time between working (labor) and playing (leisure). a) Under the assu
Econ 102A Problem Set 5 Consider a firm operating in the short run in a perfectly competitive market using a production technology given by F(K,L)=KL . Suppose that the firm is utilizing 100 units of
Econ 102A Problem Set 6 1. Suppose that the market demand curve is given by Q=100-P. Also, the firms technology is given by Q=f(K,L)=KL . The rental rate on capital is $10/unit and the wage is $25. Th
Problem Set 6 1. Suppose that the market demand curve is given by Q=100-P. Also, the firms technology is given by Q=f(K,L)=KL . The rental rate on capital is $10/unit and the wage is $25. The firm uti
Econ 102A Problem Set 5 Consider a firm operating in the short run in a perfectly competitive market using a production technology given by F(K,L)=KL . Suppose that the firm is utilizing 100 units of
Review Session I
Explanations, Homeworks and Examples.
The firm uses a technology to combine capital K and labor L : f K , L . As the firm is rational, it would produce as much as it can : Q f K , L .
Production Function, Perfect Competition, Monopoly and Price Discrimination
Examples and Graphs
Let' s do an example : K 100, r 0.8, w 10,000, Q f K , L K L , 1 Find the Long Run Returns to Scale : f
HOMEWORK 1
GRAPHS AND EXPLANATIONS
The Budget Constraint is : M Px x Py y
M Px x Py y M Px x Py y
The Budget Set is : B x, y M Px x Py y
Y M Py A B C
M Px x y Py Py
P Slope x . Py M y Then Vertical
HOMEWORK 4
Graphs and Explanations
T n n T pC wn wT C
w T C T w w p p p
Consumption
w T p
w p
Leisure
*
T Leisure
Work
Reduction in Wages: 1. Substituion Effect: Opportunity cost of leisure goes
Practical question for midterm 1) The utility function for a consumer is given by U(X, Y) =XY. The price of goods X and Y are $5. The consumer has $200 of income. Hint you have to use first derivative
Summer 2009 / Econ 102A / Homework 1 / Due in Class Q1. Consider an economy with two goods X and Y with respective prices PX and PY. The consumer has M dollars of income. (a) Write down the consumers
MID-TERM EXAM - CHAPTERS 1-8
Name: _ Date: _
Section 1 15 points
MATCHING 5 Points
Match the items below by entering the appropriate code letter in the space provided.
A.
CPA
F.
Corporation
B.
Budgeti