Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Example:
TC = 400 + 5q + q2, q>2
FC = 300, q>2
VC = 100 + 5q + q2, q> 2
AC = 400/q + 5 + q
AFC = 300/q
AVC = 100/q + 5 + q
Find minimum of AC,
AVC
Min AC = 45 at q = 20
Min AVC = 25 at q = 10
For the exams, ignore the origins of TC/AC/MC etc.,
they will j
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
MGEA02H3 L01, L02, L03
Second Term Test November 15, 2013
Time: 90
minutes
Professors Gordon Cleveland and Jack Parkinson
Version A
Instructions: PLEASE READ CAREFULLY
1. On the Scantron answer sheet, you must
PRINT your last name and first name
enter y
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
ECONOMICS A02Y
Xmas Test: December 15, 2000 QUESTIONS
PART I  MULTIPLE CHOICE (2 marks each, for 46 marks)
1 3 The perfectly competitive market for cable TV is in equilibrium, and its demand and supply
schedules have the usual shapes (positively sloped
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
ECMA04H
Final Exam, December 2012
Time: 3 hours
Professors Michael Krashinsky and Jack Parkinson
THIS IS VERSION A OF THE EXAM  MAKE SURE TO INDICATE THIS
VERSION ON YOUR SCANTRON SHEET, AND ON YOUR ANSWER
BOOKLET, BOTH WHICH ARE TO BE TURNED IN AT THE E
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Topic #9
MR = P (11/Ed)
MR = MC find q then put q into demand function for P
Monopolists operate on the elastic region
Allocative efficiency is achieved when resources are allocated in a way that delivers the most
gain to society. MSB=MSC
If a monopolist
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Topic #4
The flatter the other curve the larger the quantity changed.
What does it mean to have an elasticity of demand of at p=20? It means that if the price
changes by 4%, we expect that the quantity to change by about %1, not exactly.
Ed= % change in q
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Topic #7 notes
Rising MC is SR is due to diminishing marginal product of labour
dTC/dL gives us the PL in the short run
MR=MC is when Perfect competition firms maximize profits
MR = P = Demand curve in a perfect competition FOR FIRM
Supply curve is the MC
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Topic #3
Consumer surplus = Total utility function Total expenditure
TE= P x Q
Marginal Utility = Price when CS is maximized
Demand curve is the Marginal Utility curve (or equation) because marginal utility is the
maximum willingness to pay for any good,
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Topic #8
Supply curve in the longrun is usually flatter (more elastic)
In the long run for perfectly competitive firms the supply curve is usually the longrun price,
which is the min AC (if it is constant costs). For both industry and firm.
Sometimes SR
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Topic #2:
A competitive market is a market in which there are many buyers and sellers of the same good,
none of whom can influence the price at which the good or service is sold.
A shift of the demand curve is a change in quantity demanded at any given pr
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
MGEA02H3
Final Exam December 17, 2015
Professors Gordon Cleveland & Jack Parkinson
VERSION A
INSTRUCTIONS
1. This exam consists of 14 numbered pages, plus a short answer booklet. Please check that you have all
the pages. You will hand in the Scantron shee
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
r. 6.9le Mi 6 @ JVW?)
What happens in the SR and LR when
demand increases in a PC industry?
18 What happens in the SR and LR when
demand increases in a PC industry?
IndusTry
Supply 
SR '
IndusTry
Demand
PC FIRM PC IN DUSTRV
19 Indusrry
SUPPIY 
g
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
14
Back To our gueshon
:JmoXImizai'iion b 1' e mdwudual firm)
Max H=TRTc
q
BuT both TR and TC are a funcrion of q.
To mox: . .
dagffi/dq" _ dTR/dq dTC/dq = MR MC
Ser=0, so MRMCtO,or
A firm needs To produce where MR = MC
in order To maximize profi
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Topic #3 Demand and Utility
Explaining/Exploring Demand Curves
(Parts of Chapter 10 and Chapter 4 in
Krugman, 2nd Canadian edition)
Why are demand curves negatively sloped? (i.e.,
why do people buy less when price is high and
more when price is low?)
How
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
We acTually have a way To solve for each
Called The Reaction Funcfion" or The
BestResponsefunchon
WMMMW WM
MW
( Ask The guesrion: whcn would The firm do >
mwmm . I. . . MM
W.KW
given nrhe other firms decision.
u WW . z , MW
WWW.Mwm
Ion1 Whar wou
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
X '13.
(1/ 5 K"\
cfw_A :cfw_/ \r
2f 1 a " E 1'
cfw_A g 5/ m c
M, g) 4
w .2: K"?
J? :U
cfw_a 5 :2, f: T:
, M /\ TL. Week 6: CosTs of ProducTion
CosTs: how do They behave as oquuT rises?
WhaT does The Typical graph of CST 2
Whar does The Typical grap
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
MGEAOZH  Topic Nine
The Monopoly Model
a. The monopoly model. How does
monopolisr behave? Whaf are The
resulrs?
U Inefficiency and monopoly. Dynamic
efficiency vs. ollochrive efficiency.
c. Where does monopoly come from:
whar condifions are necessary: wh
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Midterm Exam ROOM ASSIGNMENTS
Date of exam: Monday, November 2, 2015 5 to 6:30 p.m.
Please make sure you write in only the room that you are assigned.
GYM  Students With a last name beginning with the letters A through R
m T through V.
SW 319 (Science
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Togic 7  PerfecT CompeTiTion
PerfecT CompeTiTion  The main model for
microeconomics
 The (represenTaTive) m in SR
 The indusTrx in SR
 The (represenTaTive) firm in LR
 The indusTry in LR '
 The dynamics of SR and LR
adjusTmenTs To a shock"  how d
Introduction to Microeconomics: A Mathematical Approach
MGE A02

Spring 2014
Topic #11
When small numbers of people are affected, private negotiations can solve the problem (the
Coase Theorem)
Max GTS occurs when MSC = MSB, MU=MC
If MSB > MSC then increase quantity and if MSC > MSB the decrease quantity
Supply curve is the MPC and