ECO204: Solutions to Worksheet 18
1. Consider two firms facing the demand curve P = 50 5Q, where Q = q1 + q2. The firms cost
functions are C1(q1) = 20 + 10q1 and C2(q2) = 10 + 12q2.
a. Suppose both fi
ECO204: Tutorial Worksheet 2
1. Anne has a job that requires her to travel three out of every four weeks. She has an annual
travel budget and can travel either by train or by plane. The airline on whi
ECO204: Solutions to Worksheet 14
1. Suppose that an industry is characterized as follows:
each firms total cost function
C = 100 + 2q2
P = 90 2Q
industry demand curve
a. If there is only one firm in
Janice Chan, Zhiqing Huang, Yiling Jiang, Qianying Qin, Mevan Srishanmugathasan
Introduction
Dell is famous for producing, designing and selling personal and official computers. It
is also well known
Solutions to Mid-term 1
ECO 204Y
1. Denise is shopping for lobsters and eclairs. When she faces budget line b1, she chooses
market basket A over market basket B. When she faces budget line b2, she cho
1
Solutions to Tutorial 3: ECO 204Y (2015-2016)
1. Ms. Caffeine enjoys coffee (C ) and tea (T) and where the marginal utility from enjoying a
cup of coffee is 3 while tea is 4 for all amounts of tea o
ECO204: Solutions to Worksheet 21
3 1
5R5
25 I
1. max U
subject to I = wH and H = 24 R
First, combine the constraints: I = w(24 R) = 24w wR
3
1
U 25(24w wR) 5 R 5
1
FOC :
4
3
2
U
3
1
0 25 24w wR 5 w
ECO204: Solutions to Worksheet 4
1. The director of a theatre company in a small college town is considering changing the way he
prices tickets. He has hired an economic consulting firm to estimate th
ECO 204Y5Y
Microeconomic Theory & Applications (for Commerce)
Fall 2014, Winter 2015
Department of Economics
University of Toronto Mississauga
Instructor: Kathleen N. Yu
Office Location: KN 3268, 3rd
ECO204: Tutorial Worksheet 1
1. For each of the scenarios described below, 1) draw indifference curves that represent the
following individuals preferences for hamburgers and soft drinks. 2) Indicate
1
Tutorial 3: ECO 204Y (2015-2016)
1. Ms. Caffeine enjoys coffee (C ) and tea (T) and where the marginal utility from enjoying a
cup of coffee is 3 while tea is 4 for all amounts of tea or coffee. If
ECO 204Y, Microeconomics for Commerce Students
Department of Economics, University of Toronto, Mississauga
MAKEUP EXAM
April 6, 2015
Duration: 75 minutes
Total Worth: 60 marks, All questions equally w
EC
CO204: Solu
utions to Wo
orksheet 20
1. Monopsony
M
To maximize rent, the union will choose the num
T
mber of labor
r-days so tha the margin
at
nal
re
evenue of the last day of labor sold (the addi
ECO204: Tutorial Worksheet 4
1. (Member 5) The director of a theatre company in a small college town is considering
changing the way he prices tickets. He has hired an economic consulting firm to esti
ECO204: Solutions to Worksheet 22
1. Two used car dealerships compete side by side on a main road. The first, Harrys Cars,
always sells high-quality cars that it carefully inspects and, if necessary,
EC
CO204: Solu
utions to Wo
orksheet 5
1. The lost consu
T
umer surplus is area B + C in the graph a
i
above. Thus, the loss in co
onsumer surpl is
lus
(1
16)(7 5) + (1/2)(20 16)(7 5) = $36
6.
2. Cons
ECO204: Tutorial Worksheet 5
1. (Member 1) Recall this problem from Worksheet 4: Suppose you are in charge of a toll
bridge that costs essentially nothing to operate. The demand for bridge crossings Q
ECO204: Tutorial Worksheet 7
1. Fill in the blanks in the table provided on the next page.
2. Suppose the economy takes a downturn, and that labor costs fall by 50% and are expected
to stay at that le
ECO204: Tutorial Worksheet 6
1. (Member 2) Suppose that Natashas utility function is given by u ( I ) 10 I , where I
represents annual income in thousands of dollars.
a. Is Natasha risk-loving, risk n
ECO2
204: Solution to Tutoria Worksheet 2
ns
al
t
1. Anne has a job th requires her to travel three out of every four w
e
hat
h
f
weeks. She h an annua
has
al
travel budget and can travel either by tr
ECO204: Tutorial Worksheet 7
1. (Member 3) A moderately risk-averse investor has 50 percent of her portfolio invested in
stocks and 50 percent in risk-free Treasury bills. Show how each of the followi
Tutorial 4: Deriving demand decomposition
ECO 204 Y
1) The representative consumer in a society derives the following utility from the consumption of two
goods X and Y: U = X1/4 Y 3/4. He has an incom
ECO204: Tutorial Worksheet 2
1. Anne has a job that requires her to travel three out of every four weeks. She has an annual
travel budget and can travel either by train or by plane. The airline on whi
ECO204: Tutorial Worksheet 3
1. (This problem appeared on Worksheet 2, Question 10(c). I mistakenly included it in last
weeks worksheet, and so Im including it here again as the solutions are more rel
ECO204: Solutions to Worksheet 9
1. A computer companys cost function, which relates its average cost of production (AC) to its
cumulative output in thousands of computers (Q) and its plant size in te
EC
CO204: Solu
utions to Wo
orksheet 7
1 For each of the follow
1.
wing examples, draw a representativ isoquant. What can yo say about the
r
ve
ou
t
marginal rate of technical substit
l
tution in each
EC
CO204: Solu
utions to Wo
orksheet 10
1. The data in th table give informatio about the price (in dol
T
he
es
on
llars) for wh a firm can
hich
se a unit of output and th total cost of productio
ell
ECO 202Y5Y
Macroeconomic Theory and Policy
Fall 2014, Winter 2015
Department of Economics
University of Toronto Mississauga
Instructor: Kathleen N. Yu
Office Location: KN 3268, 3rd floor in the new IM
Defining normal, inferior, and giffen goods
Evaluate Engel curves: relationship between Income and quantity demanded
o If positive: normal good: positively sloped Engel curve
o If negative: inferior