PART A: ANSWER ALL THE FOLLOWING QUESTION
Q1. Utility maximization (11 points)
Phils utility function is = , where = and = . In Lancaster, Pennsylvania his
income will be $500 and prices of good X and Y are $5 and $5, respectively. In Washington DC, his
Econ 301-001, Assignment #2
Consumer Behaviour and Demand
Due date: Tuesday, February 23, 2016 at 10.00 a.m.
For full marks answer all the following questions fully and clearly and show your
work. Illustrate the answers graphically and ensure the proper s
ECON 301-001, Assignment #3
Firm Behavior and Costs
Due date: Tuesday, March 08, 2016 at 10.00 a.m.
Question 1 (24 points)
Consider the production and cost information depicted in Figure 1, on the last page.
a. Suppose that capital can be hired for $24 pe
Problems from ECON 301-001: Midterm Exam; October 27, 2014
Q 1. The utility function for a consumer is = /( + ), where
= ( + ) and
= ( + ) .
Show the equation for the MRSX,Y, and calculate it for X=4 and Y=16. Provide a clear interpretation for it.
Econ 301-001, Assignment # 4
Perfect Competition and Monopoly
Due date Tuesday, March 22, 2016 at 10.00 a.m.
Question 1: Perfect Competitive Equilibrium in Long Run (45 points)
Assume that the ice cream industry is perfectly competitive. Each firm produci
Econ 301-001, Assignment # 5
Pricing Strategies and Imperfect Competition
Due date: Thursday April 07, 2016 at 10.00 a.m.
Question 1 (15 points)
The owner of a restaurant estimates that the elasticity of demand for meals is -1.5
for seniors and -1.33 for
'. Owners of a Florida restaurant estimate that the elasticity of demand for meals is —1.5 for senior citizens
and —l.33 for everyone else.
a. Given this information, how big (in percentage terms] should the senior citizen discount be?
Supply in a Competitive Market
The f irm's average variable cost f unctiou is equal to Q. which is minimized at Q = 0. Thus. the mar-
ginal cost function MC 2 EC? is the supply curve of the firm.
Similarly to par
#1_ i a. Capila]. (1:4)
Q = 248.000
c = $336
h. The slope of each line is
u: _ H
Thus. the horizontal intercepts are
U 133- g? 23 Labor
c. The isomst line twice intersects the isoqunnt Q = 243.000. Hence. the firm