Introduction
Chapter 8 examined profit-maximizing behavior in perfectly
competitive, monopoly, and monopolistically competitive markets.
One distinguishing feature is the absence of strategic interaction
among the firms
In perfectly competitive and mono
Chapter 1: Answers to Questions and Problems
1.
Consumer-consumer rivalry best illustrates this situation. Here, Levi Strauss & Co. is
a buyer competing against other bidders for the right to obtain the antique blue jeans.
2.
The maximum you would be will
HW1 Solutions
Chapter 1
9)
a. B(Q)= 25(2)-(2)^2 and B(Q)= 25(10)-(10)^2
b. MB(Q)= 25-2(2) and MB(Q)=25-2(10)
c. Total benet is maximized when MB=0. Set MB=0 and solve for Q to get Q=25/2
d. plug into cost function.
e. plug into MC function.
f. Obv
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #5
Part I. Look over all the problems at the end of Chapters 12 and 13 of Baye. Write up
and turn in your solutions to the following problems.
Chapter 12: problems 12, 18.
Chapter 13: problems 3, 7.
Pa
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #3
Due in class Tuesday October 30.
Part 1:
Look over all the questions and problems in Baye Chapters 7-8. Write out and turn in
your solutions to:
Problems 2, 3, 4, 17 of Chapter 7; and
Problems 4, 7,
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #2
Due in class Tuesday October 16.
Part 1:
Look over all the questions and problems in Baye Chapters 5-6. Write out and turn in
your solutions to:
Problems 12, 18, 19 of Chapter 5; and
Problems 11, 15
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #4
Part 1: Look over all the questions and problems in Baye Chapter 11. Write out and turn
in your solutions to Problems 13, 15 and 18.
Part 2: Answer the following questions. When information is insuf
HW1 Solutions
Chapter 1
9)
a. B(Q)= 25(2)-(2)^2 and B(Q)= 25(10)-(10)^2
b. MB(Q)= 25-2(2) and MB(Q)=25-2(10)
c. Total benefit is maximized when MB=0. Set MB=0 and solve for Q to get Q=25/2
d. plug into cost function.
e. plug into MC function.
f. O
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #3
Due in class Tuesday October 30.
Part 1:
Look over all the questions and problems in Baye Chapters 7-8. Write out and turn in
your solutions to:
Problems 2, 3, 4, 17 of Chapter 7; and
Problems 4, 7,
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #2
Due in class Tuesday October 16.
Part 1:
Look over all the questions and problems in Baye Chapters 5-6. Write out and turn in
your solutions to:
Problems 12, 18, 19 of Chapter 5; and
Problems 11, 15
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #4
Part 1: Look over all the questions and problems in Baye Chapter 11. Write out and turn
in your solutions to Problems 13, 15 and 18.
Part 2: Answer the following questions. When information is insuf
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #5
Part I. Look over all the problems at the end of Chapters 12 and 13 of Baye. Write up
and turn in your solutions to the following problems.
Chapter 12: problems 12, 18.
Chapter 13: problems 3, 7.
Pa
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #2
Due in class Tuesday October 16.
Part 1:
Look over all the questions and problems in Baye Chapters 5-6. Write out and turn in
your solutions to:
Problems 12, 18, 19 of Chapter 5; and
Problems 11, 15
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #4
Part 1: Look over all the questions and problems in Baye Chapter 11. Write out and turn
in your solutions to Problems 13, 15 and 18.
Part 2: Answer the following questions. When information is insuf
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #3
Due in class Tuesday October 30.
Part 1:
Look over all the questions and problems in Baye Chapters 7-8. Write out and turn in
your solutions to:
Problems 2, 3, 4, 17 of Chapter 7; and
Problems 4, 7,
Economics 101
Dan Friedman
Fall 2012
UCSC
Problem Set #5
Part I. Look over all the problems at the end of Chapters 12 and 13 of Baye. Write up
and turn in your solutions to the following problems.
Chapter 12: problems 12, 18.
Chapter 13: problems 3, 7.
Pa
Economics 101
UCSC, Fall 2012
Practice Final Exam
Rules: Closed book, no electronic devices, no notes other than one page of formulas. 180 minutes
in class. Write your answers clearly on 8x11 paper in order (part I, then part II). Write your
name on each
Chapter Outline
Market failure
Market power
Externalities
Public goods
Incomplete information
A Managers Guide to Government in the
Marketplace
Rent seeking
Government policy and international markets
Quotas
Tariffs
14-2
Welfare and Deadweight
Lo
Managerial Economics
Fall 2014
Final Review
Review Date: 12.11.14
The point values listed for each question do not necessary reect the point allocations that you will
see on the Final Exam.
1. (5 points) The City of Santa Cruz has decided to help clean up
Introduction
CHAPTER 7
Chapter 6 focused on the optimal way to
acquire the efficient mix of inputs, and how to
solve various principal-agent problems that
arise within the firm.
This chapter provides an overview of the
nature of various industries.
The
Agenda
CHAPTER 1
Introduction
The manager
Economics
Managerial economics defined
The Fundamentals of Managerial Economics
Economics of Effective Management
Identifying goals and constraints
Recognize the nature and importance of profits
Understand in
Agenda
CHAPTER 4
Consumer behavior
Constraints
Budget constraint
Changes in income
Changes in prices
The Theory of Individual Behavior
Consumer equilibrium
Comparative statics
Price changes and consumer behavior
Income changes and consumer behavi
Agenda
CHAPTER 2
Demand
Factors that change quantity demanded and factors that change demand
The demand function
Consumer surplus
Market Forces: Demand and Supply
Supply
Factors that change quantity supplied and factors that change supply
The suppl
Agenda
CHAPTER 5
The production function
The Production Process and Costs
Short- versus long-run decisions
Measures of productivity
Managers role in production process
Algebraic forms of the production function and productivity
Isoquants and isocosts
Cos
Agenda
CHAPTER 3
The elasticity concept
Own price elasticity of demand
Elasticity and total revenue
Factors affecting the own price elasticity of demand
Marginal revenue and the own price elasticity of demand
Quantitative Demand Analysis
Cross-price