Econ 100B: Tang
Practice Problem Set #4
1) Where h=hrs of service per week, assume the inverse demand curve for
services of child actors is given by
Pd=10-h/20
And the inverse supply curve for services of child actors is given by
Ps=h/20
a. Assuming the m

Economics 100B Syllabus
Intermediate Microeconomics:
Production, Costs, Supply and Competitive Markets
UCSD Fall 2013, Tang, Section B00
Times and Places
Lectures:
MWF 3-3:50p
Center Hall 113
Discussion Sections (attend any one of four, all are held in Co

Section I: Production and Costs
1) To make a delicious scramble, Suzys Scrambles can use either 3 eggs or 1 cup of
vegan egg substitutes. These inputs are perfectly substitutable.
a) Using S to represen

Econ 100B: Tang
Practice Problem Set #4
1) Where h=hrs of service per week, assume the inverse demand curve for
services of child actors is given by
Pd=10-h/20
And the inverse supply curve for services of child actors is given by
Ps=h/20
a. Assuming the m

Econ 100B: Tang Practice Problem Set 5 1) Consider the following Edgeworth box, showing indifference curves for two consumers A and B, an endowment point (E), and eight sample allocations (a, b, c, d, f, g, h, and i). B's indifference curves are linear an

Econ 100B: Tang Practice Problem Set 5: Chapter 10 1) Consider the following Edgeworth box, showing indifference curves for two consumers A and B, an endowment point (E), and eight sample allocations (a, b, c, d, f, g, h, and i). B's indifference curves a

Econ 100B: Tang
1) Suppose the competitive market price for lunchboxes is $11/unit. Short run
total costs for lunchboxes are: C(q) = 9 + 3q + q 2
a) How many lunchboxes will this firm make?
b) Does the second-order condition for this problem hold?
c) At w

Midterm 2 (A Yellow) Yuan Emily Tang 2014
1) The short-run cost function for Hoangs Terrariums is C(q)=15+4q+q2. Below what price would Hoangs
Terrariums be better off shutting down? (3 pts)
shutdown if P<min AVC
AVC=4+q
Shutdown if P<4
!
!
!
!
2) A firm

Econ 100B: Tang
1) Suppose the competitive market price for lunchboxes is $11/unit. Short run
total costs for lunchboxes are: C(q) = 9 + 3q + q 2
a) How many lunchboxes will this firm make?
b) Does the second-order condition for this problem hold?
c) At w

Midterm 2 (B Blue) Yuan Emily Tang 2014
1
1) A profit-maximizing replica painting firm has the production function q = 4L2 where q is number of
paintings produced and L is hours of labor hired. Price of a painting P=$30. Wage paid per unit of labor is w.

Econ 100B: Tang
Practice Problem Set #4
1) Where h=hrs of service per week, assume the inverse demand curve for
services of child actors is given by
Pd=10-h/20
And the inverse supply curve for services of child actors is given by
Ps=h/20
a. Assuming the m

Econ 100B: Tang
1) Suppose the competitive market price for lunchboxes is $11/unit. Short run
total costs for lunchboxes are: C (q) = 9 + 3q + q 2
a) How many lunchboxes will this firm make?
b) Does the second-order condition for this problem hold?
c) At

Econ 100B: Tang 1) Suppose the competitive market price for lunchboxes is $11/unit. Short run total costs for lunchboxes are: a) How many lunchboxes will this firm make? b) Does the second-order condition for this problem hold? c) At what price does profi

Where we are
Chapter 8 derived compe44ve equilibrium
Chapter 9 discusses role of government policy on compe44ve equilibrium
Need a measure of consumer welfare and producer welfare in
these models
Show how com

General Equilibrium
Discuss welfare more generally than just using surpluses in one market
In par<cular, mul<ple goods and markets at the same <me
Compe<ve Equilibrium in 2 Markets
Consider demand for apples and oranges
Price of oranges affects d

Midterm 1 Short Answer (A Pink)
1) Suppose Exxon Mobil operates a chemical plant that produces q tons of ethylene from tons of liquid
3
1
hydrocarbons (L) and tons of natural gas (G), where q = f ( L, G) = 4 L4 G 2 . Input prices are PL=$24/ton for
liquid

Midterm 1 Short Answer (A Yellow) 1) Suppose Exxon Mobil operates a chemical plant that produces q tons of ethylene from tons of liquid
3 1
hydrocarbons (L) and tons of natural gas (G), where q = f (L,G) = 4L4 G 2 . Input prices are PL=$24/ton for liquids

Midterm 1 Short Answer (B Blue)
1) Consider the cost function C (q) =
q2
+ 100 .
4
a. Find the average variable cost (AVC), average fixed cost (AFC), average total cost (AC), and marginal cost
(MC) functions. (4 pts)
!
AVC=VC/q=q/4
AFC=FC/q=100/q
AC=AFC+A

Midterm 1 Short Answer (B Green)
1) Consider the cost function C (q) =
q2
+ 100 .
4
a. Find the average variable cost (AVC), average fixed cost (AFC), average total cost (AC), and marginal cost
(MC) functions. (4 pts)
!
AVC=VC/q=q/4
AFC=FC/q=100/q
AC=AFC+

Midterm 2 (A Pink) 1) Consider a firm with the cost curves depicted below:
$ 10 MC 9
AC
8
7
6
AFC, AVC, AC, MC
AVC 5
4
3
2
1
AFC
0
0
2 Quantity of Output
4 q
6
a. The firm will shut down in the short run when the market equilibrium price falls below a cer

Midterm 2 (A Yellow)
1) Consider a market in a short run equilibrium. There are 6 identical firms in the industry, each with the
following short run cost function: C (q) = q 2 + 36 .
a. Find the individual firm supply curve. (2 pts)
P=MC(q)
P=2q
!
b. Find

Midterm 2 (B Blue)
1) Consider a firm with the cost curves depicted below:
$
10
MC
9
AC
8
7
AFC, AVC, AC, MC
6
AVC
5
4
3
2
AFC
1
0
0
2
4
Quantity of Output
a. The firm will shut down in the short run when the market equilibrium price falls below a certain

Midterm 2 (B Green)
1) Consider a market in a short run equilibrium. There are 6 identical firms in the industry, each with the
following short run cost function: C (q) = q 2 + 36 .
a. Find the individual firm supply curve. (2 pts)
P=MC(q)
P=2q
b. Find th

Section I: General Equilibrium and Welfare (30 points total) 1) Suppose that an island only has 2 people, Akiko and Bae. The only resources on the island are 400 coconuts. XA represents Akiko's holdings of coconuts and XB represents Bae's coconuts. Akiko'