Ryan Oprea UCSC Econ 200, Fall 2009 Microeconomic Analysis This course is an introduction to microeconomic theory, a set of tools for modeling, predicting and evaluating market behavior. The course will be focused on problem solving and application and th
Ryan Oprea Econ 200, Fall 2008 Homework #2 This homework is due on October 29 at the beginning of class. You may consult with others on the homework, but must turn in your own work (i.e. please dont copy homework from others) and must list who you worked
Ryan Oprea Econ 200, Fall 2009 Homework #3 This homework is due on the nal day of classes. You may consult with others on the homework, but must turn in your own work (i.e. please dont copy homework from others) and must list who you worked with on the ho
Problem Set 3
I. Short Case Study Problems
1. The demand for TAs at the University of Chico is approximated by the inverse demand
function w = 30000 125n, where w is the annualized wage and n is the number of TAs
hired. The supply is approximated
Final Exam Review for Intermediate Microeconomics
Econ 100A (UCSC)
1 / 11
We have a utility function: U = x4y4 We have our budget constraint: m = px x + py y How do we solve the optimiz
Ryan Oprea Econ 200, Fall 2008 Homework #1 This homework is due on October 10 at the beginning of class. You may consult with others on the homework, but must turn in your own work (i.e. please dont copy homework from others) and must list who you worked
Econ 200 - PS1
October 4, 2016
a) The market clearing price, or competitive equilibrium price, is found by
setting demand equal to supply, or D(p) = S(p). Therefore, in year 1, the
following CE is found:
3550 266p = 1800 + 2
Problem Set 2
October 18 2016
*4-5 hours with Ben and Alfonso
A) c(y) = c(x1 , x2 , y), given x1 = 8, and x2 = 5. This means we have to
set up the cost minimization problem with 8 as the coefficient on x1 and 5
as the coeffi
Notes: Bold entries are given data; other entries are calculated.
Some of this material can be found in Varian Chapter 16.
Sections 5-6, 8-10 are especially recommended.
A. So far we have only looked at two extreme types of markets.
1. Competitive markets have only price-taking firms (presumably
ECON 200 - PS 4 - Fall 16
November 23, 2016
Short Case Study Problems
Consulting Fees and Cost of Information
If the market for your new product turns out well (G) you will gain incremental prot of 10 (millions of $),
but otherwise (B)
Econ 200 - PS4
November 22 2016
= .5(10) + .5(5) = 2.5 Million
Yes, we should bring the product out to market given our profit of $ 2.5 million
= .5(7) + .5(3) = 2 Million
Since 2.5 > 2, it is not worthwh
3. Profit and Supply.
See Varian Ch 2-3
I. Maximizing Profit
A. Neoclassical theory assumes that all firms act so as to maximize profits.
B. As noted in Varians nice discussion at the beginning of Ch 2, this immediately
implies that the marginal revenue f
Econ 200 - PS3
November 8 2016
(a) The mean of the lottery ticket value is the expected value:
pi mi = (.1 12) + (.9 0) = 1.2
The variance is as follows:
V ar(X) = E(mE[X])2 =
pi (mi E[X])2 = .1(121.2)2 +.
7. Monopoly and Price Discrimination
See Varian Ch 14.
I. Simple Monopoly vs. Perfect Competition
A. The core behavioral rule is just the same.
The firm maximizes profit,
max py c(y)
B. The resulting decision rule is the same.
The firm still sets marginal
4. Preferences and Demand
See Varian Chapters 7-9
I. Preference Relations and Utility Functions
A. Our main goal in this section is to model how people choose among consumption
B. Each opportunity is called a bundle.
C. A bundle is represen
Ryan Oprea Econ 200, Fall 2009 Homework #2
This homework is due on November 3 at the beginning of class. You may consult with others on the homework, but must turn in your own work (i.e. please dont copy homework from others) and must list who you worked
Ryan Oprea Econ 200, Fall 2009 Homework #1 This homework is due on October 15 at the beginning of class. You may consult with others on the homework, but must turn in your own work (i.e. please dont copy homework from others) and must list who you worked
5. Monopoly I. Monopoly vs. Competition A. The core behavioral rule is just the same. 1. The rm maximizes prot. max py c(y ) B. The resulting decision rule is the same. 1. The rm still sets marginal revenue equal to marginal cost. C. But the things the rm
4. Competitive Firms I. Prot Maximizing A. The core behavioral assumption about rms in economics is that they act to maximize prots. 1. We now have two behavioral assumptions about rms (prot maximization and cost minimization). 2. These two behavioral ass
3. Cost and Technology Microeconomic Analysis, Chapters 1-5 Intermediate Microeconomics, Chapter 18-23 I. Describing the Firm A. The neoclassical description of the rm is really just a description of the rms production possibilities. 1. How inputs create
2. Preferences and Demand Microeconomic Analysis, Chapters 7-9 Intermediate Microeconomics, Chapter 3-5; 8-9 I. Preference Orderings A. Bundles 1. 2. 3. 4. Our main goal with this section is to model how people choose between consumption options. We call
Ryan Oprea Econ 200, Fall 2008 www.ryanoprea.com/econ200 1. Competitive Markets I. The Economic Environment A. The rst task in applying economic theory is to describe the economic environment in a way that is as simple as possible without leaving out any
7. Oligopoly I. Overview A. We have now looked at two extreme types of markets. 1. Competitive markets have an innite (or at least a very large) number of rms. 2. Monopolist markets have one rm. B. We now look at markets greater than monopoly but not larg
Ryan Oprea Econ 200, Fall 2009 Midterm Exam This midterm is due in class on November 17. You may not work on this exam with any other party, though you are welcome to ask me to clarify mysterious questions. Points are out of 100. Assume all markets are co
UC Santa Cruz
1. In some cases you may know that the intercept of an equation is 0. This is called regression
through the origin:
Derive the expression for the coefficient B1 by minimizing the sum of the squared residuals (just
Problem Set 2 - ECON 200 - Fall 2016
October 18, 2016
Short Case Study Problems
1 Supply in the Short and Long Run
A rm has production function ln y = 13 ln x1 + 12 ln x2 . Input 2 is unchangeable for now at the level x2 = 8.
Midterm Practice Problems - ECON 200 - Fall 2016
October 23, 2016
You manage a department whose mission involves two quantities, x1 (say expenditures on safety) and x2
(say expenditures on education). Preferences are strictly monotone
Midterm - ECON 200 - Fall 2016
October 26, 2016
Supply of alkoids is well approximated over the relevant range by the expression p 3, where p is price.
Using the same units of measurement, demand is well approximated by 12 2p.
What is the co
Problem Set 1
I. Short Case Study Problems. Where insufficient information is provided, write down an explicit and
reasonable assumption, and proceed. Be sure to give credit to classmates and others who helped you