MMSS 211-1
Problem Set 3
Fall 2007
1. Sally’s Sunflowers, Inc. uses fertilizer, labor, and land to produce sunflowers. When the
amount of land and labor is fixed, the relationship between the quantity
MMSS 211-1
Problem Set 1
Fall 2007
1. A) Suppose that the demand for milk increases because a new beauty treatment is discovered that uses milk. Use diagrams to analyze the effects of this change o
MMSS 211-1
Fall 2014
Problem Set 3
you would be willing to pay to join the movie club to be
allowed to rent the DVDs at the price given?
1. Suppose that a consumers utility function is U(x,y) =
ln x +
MMSS 211-1
Fall 2014
Problem Set 2
1. Jessica likes apples but doesnt care one way or the
other about pears. If apples and pears are the only two
goods available, draw her indifference curves.
5. Tom
MMSS 211-1
Problem Set 2
Fall 2014
1. Jessica likes apples but doesnt care one way or the other about pears. If apples and
pears are the only two goods available, draw her indifference curves.
2. Satc
New Material for Final Exam
Notes: From the material on monopoly through the end of the quarter.
Text: Chapter 17 (Skip pp. 604-609)
Real World Examples: (fair game for multiple choice):
1) Multitaski
MMSS 211-2
Problem Set 4
Fall 2007
First, a few extra problems on the consumer behavior material: 1. Suppose initially that when the price of gasoline is $1 per gallon, you consume 1,000 gallons pe
Weve banned laptops and cell phones from class due to the negative externalities they create for students
and me. What you do when not in class is, of course, up to you. However, its probably a good i
MMSS 211-1
Last Problem Set!
4. A monopolys price is $20. At this price the
absolute value of the elasticity of demand is 2. What
is the monopolys MC?
1. Suppose that the market demand curve for a
mon
MMSS 211-1 Practice Final Exam Questions
1. A monopoly is able to practice price
discrimination. The MC of production is constant at
$10 per unit. The demand functions of the two types
of consumers ar
MMSS 211-1
Fall 2014
Problem Set 5
price of 100, and if w = 4, how much more will Julia be paid than
the other managers in the industry? (Let Julias salary be given
by IJ.)
1. A firms TR curve is give
It is important that all of the exams are graded in the same way and that no mistakes are
made in the process. It is Gabys job to strive to be certain that the exams are graded
consistently. Youve bee
1. In many experimental markets, poorly informed, error-prone, and uncomprehending human agents
interact through the trading rules to produce social algorithms which demonstrably approximate the
wealt
1
MMSS 211-1 Week of 11-17-2014 Notes
Golden Key 2) The more elastic is demand at a given P, the greater is MR.
Math proof (Woo hoo!):
Price Discrimination
Three Conditions to Be Profitable:
1) Firm m
1
211-1 Week of 11-3-2014 Notes
The MR curve of a PC firm is a horizontal line at P (and so coincides with its demand curve);
i.e., MR = P.
We noted last time that this follows from the fact that TR =
1
211-1 Week of 10-13-2014 Notes
Weve decomposed the total change in B (the total effect) into 1) the change in B due to the
relative price changethe sub effect and 2) the change in B due to the real
1
211-1 Week of 11-10-2014 Notes
Monopolythe sole producer of a product that has no close substitutes. Reasons monopoly
may exist:
D curve facing the monopoly is the market demand curve for the produc
MMSS 211-1 Solutions Midterm 2E
Question 8
Answer must feature three parts: comparison of marginal cost and price, direction of change in
quantity, clear explanation.
At Q=17, MC=72 > P=64, so the fir
MMSS 211-1
Practice Exam 1 Questions
6. Which of the following is likely to increase the
equilibrium price of a commodity?
1. A consumer buys food and clothing out of her
income. When her income goes
MMSS 211-1
Practice Exam 1 Questions, Part II
The following questions can be addressed by either
Eric or Gaby the TA.
1. Suppose that the demand and supply of a given
good are Qd = 60-5P and QS = -10
MMSS 211-1
Practice Exam 2 Questions, Part I
1. A PC firm must sell its output at a market price of $2. Its
present operating figures are: AC = $4
MC = $2,TFC = $1,750, Q = 1,000. To earn maximum prof
MMSS 211-1
Last Problem Set!
1. All firms in a competitive industry have LRTC curves given by C = Q 3 10Q2 +50Q, where Q is the level of the firm's output. What will be the industry's LR equilibriu
MMSS 211-1
Sample Final Exam Questions
1. A monopoly finds that at the current output level, MR = $2, AC = $2, and this is the minimum value of AC. To maximize profit, this firm should A. increase p
MMSS 211-1
Problem Set 2
Fall 2007
1. Auerbach's demand for frozen custard is given by P = 20 2QA while that for Kotlikoff is given by P = 40 2QB. Supposing that these are the only two consumers
politics science discussion
04/18/2014
Electoral politics
Medium Voter Theorem
Arrows theorem: no perfect voting theorem (no proof)
Different electoral system pros and cons
Electoral college
Pros: do
Case Studies in Deception
Case 1
For a study on conformity to group norms, Ann Smith constructs a survey designed to measure
attitudes toward a controversial topic. The research proposal she submits d
2000 CENSUS RACE QUESTION
Asked to place in category (one or more):
1. American Indian or Alaskan Native (including Central and South America)
2. Asian
3. Black or African American
4. Hispanic or Lati
9L
"lire.wu W1 .n'._.,. 2:77 ._.v a.
Political science and rational choice
WELLIAM H. RIKER
The impulse to study poiitics scientifically is both old and persistent.
Aristotle collected 158 const
PHILIPPE MONGIN
EXPECTED UTILITY THEORY
Prepared for the Handbook'gf Economic Methodology (].Daois, W.Hands, and
U.Maki, eds. London, Edward Elgar, 1997, p. 342350). Slightly longer version than
the p