General
Equilibrium in an
Exchange
Economy
Topic 13:
General Equilibrium in an
Exchange Economy
Edgeworth Box
Equilibrium
We consider equilibrium in all markets.
Edgeworth Box
Equilibrium
Questions:
P
1.
[1] In short-run competitive equilibrium, which of the following is
not always true ?
(a)
A rm will produce a positive quantity only if price is above
the minimum of average variable cost.
(b)
If t
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Homework 12
Use the space below and the back to write out and clearly indicate your answers. Do not use this
sheet as scrap paper, but use it to neatly present your work. The Bertrand mo
Econ 401: Intermediate Microeconomic Theory
Fall 2014
Midterm 1
Your name: .
Your UMID: .
Your section number: .
This exam has six questions.
All questions have equal weight.
Please answer all six
1.
[3]
Economists do not typically assume the owners of firms choose actions that
(a) maximize revenue. (b) minimize costs for producing a given amount of output. (c) maximize profit. (d) maximize out
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Your Section #:_
True-False Questions: Answer A for "True" and B for "False". Each correct answer is worth 2
points. Each wrong answer is worth zero points. Answers left blank are wo
MRS and Utility
Maximization (1)
Topic 3:
Marginal Rates of Substitution
and Utility Maximization (1)
MRS and Utility
Maximization (1)
The Budget Constraint
Suppose there are only two goods.
The quant
Econ 401
Final Exam Study Guide
Monopoly Pricing
- Consumers behave competitively
- Demand: QD(p)
- Monopolist chooses a quantity and can sell at price determined by inverse
demand: PD(Q)
- Monopolist
My Name Is:
Use the space below and the back to write out and clearly indicate your answers. Do not use this
sheet as scrap paper, but use it to neatly present your work. Bruces preferences for pairs
Game Theory (1)
Game Theory (1)
Example: Trac
Trac Example
Game Theory
Trac Example
The commuter game:
Game Theory
Joint Homework
Example
Joint Homework
Example
D
Topic 17:
Game Theory (1)
C
B
A
60 co
Econ 401: Intermediate Microeconomic Theory
Fall 2014
Final Exam
Your name: .
Your UMID: .
Your section number: .
This exam has six questions. Please answer all six questions.
Explain your answers c
Complements,
Substitutes,
and Equilibrium in
Two Markets
Complements,
Substitutes,
and Equilibrium in
Two Markets
Perfect Complements
All consumers have the same utility function:
Topic 12:
Complement
February 7, 2008
Name_
Midterm I
Economics 401
Assume throughout the exam that preferences are strictly monotonic and
strictly convex and that indifference curves are not kinked UNLESS the
question te
Intermediate Microeconomics, 2008
Problem Set No 3: Solutions
Problems 1) Consider three people, A,B,C and the relation "at least as old as". Is this relation transitive? Is it complete? Each person
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True-False Questions: Answer A for "True" and B for "False". Each correct answer is worth 2
points. Each wrong answer is worth zero points. Answers left blank are wo
Intermediate Microeconomics, 2008
Problem Set No 3 due: Jan, 16 / 17
Problems
From Varian, p52:
1) Consider three people, A,B,C and the relation "at least as old as". Is this relation transitive? Is
Intermediate Microeconomics, 2008
Problem Set No 6: Solutions
Problems 1) We considered preferences represented by the following utility function in the last homework:
U (q1 , q2 ) = q1 q2 We assume
Problem Set 4 Solutions
ECON 401, Winter 2008
Problems
A. (3.1) Which of the following pairs of goods are complements (people like to consume them together), and which are substitutes (people are wil
Intermediate Microeconomics, 2008
Problem Set No 5: Solutions
Problems (4.7) During his first year at school, Ximing buys eight new college textbooks at a cost of $50 each. Used books cost $30 each.
Wednesday, November 22, 2017
anghsu
Econ 401
- methodology - decision, incentives
- applications
- next week: Discussion on Monday, Wednesday (normal lecture), discussion sections
become lectures on T
Discussion Section 13
Chapter 18: Auctions
18.1 There are 5 bidders in attendance: Aino, Erkki, Hannu, Juha, and Matti. The moosehead is worth $100 to Aino, $20 to Erkki, and $5 to each of the others.
Midterm 2 Review
Measures of Welfare Change Consumers surplus is the area under the ordinary
demand curve, above the price, up to the quantity purchased. There is a difference
between consumers surplu
Midterm 1 Review
Ordinary Demand Curve: The relationship between own quantity and own price
holding everything else constant.
Price Offer Curve: The collection of optimal bundles at different price le
Same Preferences
Same Preferences
Two people have the same
If two people have the same
preferences
indifference curves and the
preferences go in the same direction
(e.g. all goods)
same indifference
Discussion Section 8
Chapter 19: Technology
19.2 Suppose x1 and x2 are used in fixed proportions and f (x1 , x2 ) = mincfw_x1 , x2 .
(i) Find the marginal products for both factors assuming x1 < x2 .
Agenda
Know Your Terms
Properties of Demand Functions
Demand curve from optimal choice
Own price changes & price offer curve
Income changes & income offer curve
Engel curve
Normal and Inferior
Discussion Section 14
Chapter 35: Externalities
35.1 The town council of Horsehead, Massachusetts, issues permits to trap lobsters and is
trying to decide how many permits to issue. It costs $2,000 do
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Homework 7
Print this page out and use the space below and the back to write out and clearly indicate your
answers. Do not use this sheet as scrap paper, but use it to neatly present you
My Name Is: _
Homework 8
Print this page out and use the space below and the back to write out and clearly indicate your
answers. Do not use this sheet as scrap paper, but use it to neatly present you
Homework 6
Use the space below and the back to write out and clearly indicate your answers. Do not use this
sheet as scrap paper, but use it to neatly present your work. Maudes preferences for delphin
Same Preferences
Two people have the same
preferences
same indifference curves
same MRS everywhere
Same Preferences
If two people have the same
indifference curves and the
preferences go in the same d