Problem Set 3 Solution
ECONW3211 Intermediate Microeconomics
Problem Set 4 Suggested Solutions
1 Problem
Technology
Set 3 Solution
1
April 15, 2016
Technology
1
Technology
Cost minimization
2
Cost min
W3211
Professor Vogel
Recitation Solutions  Sequential move games
Question 1. Recall the Prisoners Dilemma payoff matrix:
Tell
Slient
Tell
Silent
1,1
0,3
3,0
2,2
Suppose that this is a sequential gam
W3211
Professor Vogel
Recitation  Sequential move games
Question 1. Recall the Prisoners Dilemma payoff matrix:
Tell
Slient
Tell
Silent
1,1
0,3
3,0
2,2
Suppose that this is a sequential game in which
Car owners: There are 100 car ownersj = 1, ., 100and the true value of
car owner js used car is $ (j 100). An owner would sell her car as long as
she is paid no less than the true value of her car and
W3211 Fall 2014
Professor Vogel
Recitation  Risk and uncertainty
Bobs utility as a function of his wealth, w, is U (w) = w1/2 . Bobs wealth is $16. He is
given the option to either keep his $16 or to
W3211
Professor Vogel
Recitation  Put option
Suppose that $1 today and one year from today are equivalent. Suppose that there is an
option that costs x. Whoever owns the option has the right to sell
1
Key Terms in Lecture
Game
players
actions
strategies
payoffs
Nash Equilibrium
Dominant Strategy
weak
strict
2
Game Theory
In economics we consider an agent choosing actions to
maximize its
Lecture 8:
Game Theory
1
Key Terms in Lecture
Sequential game
Subgame and proper subgame
Subgame perfect Nash Equilibrium (SPNE)
Backward induction
2
Sequential Games
In some games, the order of move
Lecture 7:
Game Theory
1
Key Terms in Lecture
Mixed strategies
Continuum of actions
Tragedy of the commons
2
Mixed Strategies
When a players strategy calls for doing one
thing or another with cert
Lecture 9:
Repeated Games
Key Terms in Lecture
Stage game
Trigger strategies
Finitely repeated game
Innitely repeated game
Repeated Games
In many realworld se?ngs, players play the same game
Intermediate Microeconomics
Spring 2017
Musatti
Recitation Outline 2
o
Optimal Bundle
More on preferences and interior solutions
Corner solutions
When prices or the initial endowment change: Dem
Intermediate Microeconomics
Spring 2017
Musatti
Recitation Outline Week 4
Income and Substitution effect Slutsky
Income and Substitutions effect  Hicks
When the price of item X increases, peop
W3211
Professor Vogel
Recitation  Put option
Suppose that $1 today and one year from today are equivalent. Suppose that there is an
option that costs x. Whoever owns the option has the right to sell
W3211 Fall 2014
Professor Vogel
Recitation Solutions  Risk and uncertainty
Bobs utility as a function of his wealth, w, is U (w) = w1/2 . Bobs wealth is $16. He is
given the option to either keep his
Intermediate Macroeconomics
Solutions to the Fall 2017 Final Exam
Jiayin Hu, Mai Li and Xavier MoncasiGutierrez
Question 1. Short Speeches
(a) When Robinson Crusoe experiences an decrease in producti
S OLUTION TO P ROBLEM S ET 7
(1) Money in the Keynesian Model
a) When the Fed prints more money, money supply increases, so that there is more money available in the economy.
The Keynesian model assum
S OLUTION TO P ROBLEM S ET 6
1
Consumption and the Interest Rate
1. Real consumption and labor supply depend on real interest rates. An increase in real interest rate motivates people
to reduce curren
EBGN 301: Intermediate Microeconomics Name [5 E 1
Summer II 2012 Exam #1: Ryan Bracken
I. You will have up to 2 hours to complete the exam and can only use an ofce calculator and ruler.
2. The exam ha
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Midterm 1 Solution
Fall 2017
1
Utility Function
Consider the utility function for good 1 and good 2:
c
U (x1 , x2 ) = axc
1 + bx2
1/c
1. Calculate the marginal rate of substitution: First find the mar
Car owners: There are 100 car ownersj = 1, ., 100and the true value of
car owner js used car is $ (j 100). An owner would sell her car as long as
she is paid no less than the true value of her car and
W3211
Professor Vogel
Recitation solutions for the week of January 30
1. The objective function is
f ( x, y) = ln x + ln y,
and the constraint is
px + qy = I,
where , , p, q > 0 are positive constants
250
PROFIT MAXIMIZATION
(Ch. 19)
19.1 (0) The shortrun production function of a competitive firm is
given by f (L) = 6L2/3 , where L is the amount of labor it uses. (For
those who do not know calculu
266
COST MINIMIZATION
(Ch. 20)
kinks in the indierence curves. Then you found that the consumers
choice might occur at a boundary or at a kink. Usually a careful look
at the diagram would tell you wha
238
TECHNOLOGY
(Ch. 18)
Example: Let the production function be f (x1 , x2 ) = mincfw_x1 , x2 . Then
f (tx1 , tx2 ) = mincfw_tx1 , tx2 = min tcfw_x1 , x2 = t mincfw_x1 , x2 = tf (x1 , x2 ).
Therefo