Homework 1
Microeconomics
1. For each of following utility functions graph the indifference curves through the bundles (2,3)
and (2,4). Find one other bundle on each indifference curve. For each of them find the formula for
the marginal rate of substituti
Homework #10
Ben Drucker, Douglas Kessel, Ethan Kochav
Question 1
(a)
M RSB =
M RSS =
U
x
U
y
U
x
U
y
M RSB =
3
1
M RSS =
y
x
B
(12, 8)
(10, 10)
S
(b)
Bruce will give up y for x and Sheila will give up x for y. Sheila will be willing to trade 1 x 3 for
Homework 5 Solutions Fall 2011
Alex Frouman
Note: graphs not to scale
If you saw the movie The Perfect Storm then you know that commercial shing is a risky venture. In
particular a shing boat cannot be assured of nding a sucient number of sh to make any m
Questions 1f) and 4 not graded.
Please note for C, the MRS is undefined on the points asked for (2,3) and (2,4).
However, on the other line, ie on a point like (4,2), how much y would you be willing to
give up for more x? Any decrease in y would put you o
HW 6 Solutions- question 3 still missing.
1. Scarlett wants to maximize EU, so we write
EU=.1(10000-7500+C-rC)^(1/2)+.9(10000-rC)^(1/2) =.1(2500+C(1-r)^(1/2)+.9(10000-rC)^(1/2)
Differentiate wrt C, set=0, and then solve for C as a function of r
.1*(1-r)(1
Homework 11 Suggested Solution
1. Sheila is endowed with 8 pounds of coffee (x-good) and 16 quarts of milk (y-good) and Bruce
is endowed with 4 pounds of coffee and 16 quarts of milk. We can represent Sheilas and Bruces
preferences over coffee (x) and mil
Homework 5 Solutions Fall 2011
Alex Frouman
Note: graphs not to scale
There are 8760 hours in a (non-) leap year. Assume that a typical upper middle income worker earns
$80 per hour and has no other source of income. The worker can use his income to purch
Homework Assignment 4 Solutions to 7 to be added
Grading based on 1,2,3 (and bouns)
1. Charles likes to drink sparkling waters. His preferences on San Pelligrino water (x) and
Vintage seltzer water (y) can be represented by the utility function U(x,y) = 4
Math 151. Rumbos
Spring 2008
1
Solutions to Assignment #21
1. Fortyeight measurements are recorded to several decimal places. Each of these
48 numbers is rounded o to the nearest integer. The sum of the original
48 numbers is approximated by the sum of th
Intermediate Microeconomics - Midterm Examinations
October 23, 2006
Answer all four questions. Good luck!
1. (10 points) De ne the following terms brie y:
i) Price Elasticity
ii) Marginal Rate of Substitution
iii) Average Productivity of Labor
2. (20 poin
ECON 3211: Intermediate Microeconomics Final
Examination
Professor Prajit Dutta
Question 1
a. Draw the indifference curves representing perfect complements. Explain where the
optimal bundle typically is, for a given level of income.
b. Draw the indifferen
Homework 8
1. USTrak is a passenger rail service. The production function for USTrak is given by the
1
2
1
2
following: Q = f ( L, K ) = L K where L represents man-hours, K represents machine hours
and output Q is measured in hundreds of passenger miles (
Homework #8
Ben Drucker, Douglas Kessel, Ethan Kochav
Question 1
(a)
M C1 = .2Q1
250
AC1 = .1Q1 +
Q1
(1)
(2)
M C1 = AC1 Q1 = 50
(3)
QS1 = 5P
(4)
M Cj = .2Qj + 5
250
ACj = .1 Qj + 5 +
Qj
(1)
M Cj = ACj Qj = 50
(3)
Qj = 5P 25
(4)
C
P
M
AC
50
Q
(2)
(5)
C
P
M
Homework #5
Ben Drucker, Douglas Kessel, Ethan Kochav
Question 1
(a)
y
700,800
8,760
L
(b)
Proportions altered for clarity. Drawing is not properly scaled.
700,800
y
690,800
BL
BL
or
ig
in
al
ta
x
(7,510, 90,000)
8,760
L
1
Ben Drucker, Douglas Kessel, Eth
Homework 7
1. A firm produces a soft drink using two ingredients, sugar (S) and bubbly water (B) in fixed
proportions: 6 tablespoons of sugar per 12 oz of bubbly water.
a) What is the production function? Does this production function exhibit constant,
in
Homework 2
Intermediate Micro
1. A survey shows that the typical Brown undergraduate has $6,000 to spend each year on books
and entertainment. That typical student spends $2000 on books and the remaining $4000 on
entertainment. The Brown dean finds it out
Homework Assignment 4
1. Charles likes to drink sparkling waters. His preferences on San Pelligrino water (x) and
Vintage seltzer water (y) can be represented by the utility function U(x,y) = 4lnx + lny where both
are measured in liters.
a) If the price o
Homework 8
1. There are three firms in the printing business. Firm 1 has a total cost curve given by
C1 (Q1 ) .1Q12 250 where Q is measured in books printed per day. Firms 2 and 3 have identical
costs to each other but their costs are higher than firm 1.
Homework 9
1. Briefly explain how the following statements could be true. In your explanations you should
include a diagram and a brief discussion of how elasticity is relevant (or is not relevant) to the
truth of the statement.
a) The government imposes
Homework 3
Intermediate Microeconomics
1. Each month Felix purchases household utilities. His preferences over gallons of heating oil (x)
and units of other utilities (y) can be represented by the utility function:
U(x,y) = (xy)2 .
a) Derive Felixs demand
Homework 10
1. Sheila and Bruce are taking a long plane flight. Sheila brought 10 bags of peanuts (x) and 10
bags of chips (y). Sheila's utility function is US(x,y) = lnxS + lnyS . Bruce brought 12 bags of
peanuts and 8 bags of chips. Bruce's utility func
Homework 5
1. There are 8760 hours in a (non-) leap year. Assume that a typical upper middle income worker
earns $80 per hour and has no other source of income. The worker can use his income to purchase
a consumption good priced at $1 per unit.
a) Illustr
Homework 11
Do NOT Turn In
1. Roebuck is a manufacturer of sweatshirts and has an exclusive contract to sell sweatshirts to the CU
community (i.e. Roebuck is a monopolist). The total cost curve of manufacturing white sweatshirts is
TC(Q) = 40Q. The CU com
Intermediate Micro Homework 2 Solution
Susan Elmes
Fall 2012
1. A survey shows that the typical Brown undergraduate has $6,000 to spend each year on books and
entertainment. That typical student spends $2000 on books and the remaining $4000 on
entertainme
Homework 7 Solutions Fall 2011
Alex Frouman
The Relative Bagel Shoppe makes bagels in NYC. The shop uses both labor and raw materials (ingredients) to make bagels. The relationship between the hours of labor worked per day and the quantity of bagels
(meas
Homework 6
1. Recall Scarlett the OB-GYN from class. Suppose the probability that she is sued is .1 and her
income is 10000. In the case she is sued she will lose 7500 in the settlement. She may purchase
malpractice insurance at a rate of $r per $1 of cov
Intermediate Microeconomics W3211.002
Fall 2008 Midterm
Prof. Prajit Dutta
1. (5 pts each) Define the following terms briefly, with graphs if possible.
a. More is better
b. Substitution effect (using either method explained in class)
c. Increasing returns