ECOS 2001 Tutorial 12
1. In Ohio, there are two kinds of workers, Klutzes whose labour is worth $1000 per
month and Kandos whose labour is worth $2500 per month. Ohio has twice as many
Klutzes as Kandos. Klutzes look just like Kandos and are accomplished
ECOS 2001 Tutorial 5
1. Morris Zapp and Philip Swallow consume wine and books. Morris has an initial
endowment 0f 60 books and 10 bottles of wine. Phillip has an initial endowment of 20
books and 30 bottles of wine. They have no other assets and make no t
ECOS 2001 Tutorial 6
1. Suppose that the production function is Cobb-Douglas and f ( x1 , x2 ) = x11 2 x23 2 .
1. Write an expression for the marginal product of x1 at the point ( x1 , x2 ) .
2. The marginal product of x1 (increases, decreases, remains co
LECTURE 4
ECOS2001
Intermediate Microeconomics
School of Economics
The University of Sydney
ECOS2001 - Lecture 4
1
Content Overview
Topic
Welfare Theorems
Reading
Chapter 31
Exchange
Two consumers, A and B.
Their endowments of goods 1 and 2
are A
A
A
LECTURE 5
ECOS2001
Intermediate Microeconomics
School of Economics
The University of Sydney
ECOS2001 - Lecture 4
1
Lesson Plan
Topics
1. Technology
2. Cost minimisation
Readings
Chapter 18, 20.
Technologies
A technology is a process by which inputs
are
ECOS 2001 Tutorial 1
Question 1:
Your budget is such that if you spend your entire income, you can just afford either 4
units of good x and 6 units of good y or 12units of x and 2 units of y.
(1) Draw the budget line.
(2) What is the opportunity cost of o
ECOS2001 INTERMEDIATE MICROECONOMICS
TUTORIAL 4
1. Irene and Orville live in an isolated valley and trade with no one but each other. They consume
only cantaloupes and grapefruits. Irene has an initial endowment of 5 cantaloupes and 12
grapefruits. Orvill
ECOS2001 INTERMEDIATE MICROECONOMICS
TUTORIAL 2
1. Consumers in Queensland pay twice as much for avocados as they do for peaches. However,
avocados and peaches are equally priced in SA.
If consumers in both states maximize utility (and have identical pref
ECOS2001 INTERMEDIATE MICROECONOMICS
TUTORIAL 3
1. Marys utility function is U (b,c) =b+100c-c2 , where b is the number of silver bells in her
garden and c is the number of cockle shells. She has 500 square feet in her garden to allocate
between silver be