The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2014
ECON3133 HW3
MC
bbcbd
Analytical questions
1a)
q= k + l
Let t > 1,
DRS.
b)
LAU Ming Fai 07210587
tk+ tl
t ( k + l )
=
t q
=
< tq
= p ( k + l )wlvk
cfw_
max
k ,l
cfw_
cfw_
1
1
=p k 2 v =0
k
2
1
1 2
= p l w=0
l
2
cfw_
p2
4 v2
p2
l =
4 w2
k=
p2
p2
p 1
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
Basics
Given f (k , l ) , let f1 (k , l )
f (k , l )
.
k
Example:
There are two ways to get f1 (tk , tl ) . One way is to plug in tk,tl
into the places of k,l in the function of
f (k , l )
.
k
The other way is to first write out f (tk , tl ) , then diffe
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
Homogenous and Homothetic Functions
g(k,l) is homogenous of degree r if
If f is a monotonic transformation from any homogenous function, then f is
homothetic.
If f(k,l) is a homothetic function, then we can find a strictly increasing function h and
a homo
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
d ln( k / l )
q
d ln RTS
(
q0 ( omit.)
1
1
dk
dl
k
l
f kk
f
)dk ( ll
fk
fl
f lk
fl
d (ln( k / l )
d (ln( f l / f k )
(ln k ln l )
dk
k
(ln f l ln f k )
dk
k
(ln k ln l )
dl
l
(ln f l ln f k )
dl
l
f kl
)dl
fk
Along the isoquant q=q0, dk=(fl/fk)dl, subst
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
CHAPTER 14
MONOPOLY
The problems in this chapter deal primarily with marginal revenuemarginal cost calculations in different contexts. For such problems, students' primary difficulty is to remember that the marginal revenue concept requires differentiati
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
CHAPTER 12
THE PARTIAL EQUILIBRIUM COMPETITIVE MODEL
The problems in this chapter focus on competitive supply behavior in both the short and long runs. For shortrun analysis, students are usually asked to construct the industry supply curve (by summing f
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
CHAPTER 10
COST FUNCTIONS
The problems in this chapter focus mainly on the relationship between production and cost functions. Most of the examples developed are based on the CobbDouglas function (or its CES generalization) although a few of the easier o
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
CHAPTER 11
PROFIT MAXIMIZATION
Problems in this chapter consist mainly of applications of the P = MC rule for profit maximization by a pricetaking firm and some examination of the firms derived demand for inputs. A few of the problems (13.213.5) ask stu
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
CHAPTER 9
PRODUCTION FUNCTIONS
Because the problems in this chapter do not involve optimization (cost minimization principles are not presented until Chapter 9) they tend to have a rather uninteresting focus on functional form. Computation of marginal and
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
6. Game Theory (chapter 8)
Reference: chapter 8 Synder and Nicholson
Adam M. Brandenburger and Barry J. Nalebuff COOPETITION, 1996.
Outline:
1. Basics
2. Dominant strategy
3. Nash Equilibrium
4. Mixed strategy
5. Sequential Games
6. Repeated Games
7. Str
The Hong Kong University of Science and Technology
Microeconomic Theory II
ECON 3133

Fall 2012
Department of Economics, HKUST
ECON 3133
Microeconomic Theory II
Semester: Fall 2012/13
Tutor: John Cheng
Email: [email protected]
Office number: Room 2393 (ext.7597)
Office hours: Tue 2:00p.m. 3:00p.m.
Practice questions
1.
Suppose China Apple produces app
The Hong Kong University of Science and Technology
Microeconomic Theory II
ECON 3133

Fall 2012
Econ 200
Fall, 2010
Midterm Exam
Instructor: Yan YU
Name:
ID number:
You have 120 minutes. You may use calculators if necessary.
I.
Multiple choices ( 6 points each, 42 points total.)
Not shown, as there wont be any MC questions.
II. Short questions (7 po
The Hong Kong University of Science and Technology
Microeconomic Theory II
ECON 3133

Fall 2012
Econ 200 Microeconomic Theory II Answer Key
Semester: Fall 2010
Professor Y. YU
Final Examination Dec. 15, 2010 16:3019:30
General instruction:
This is a closed book exam. You have 180 minutes to complete the test.
There are 10 questions.
Answer to short
The Hong Kong University of Science and Technology
Microeconomic Theory II
ECON 3133

Fall 2012
Department of Economics, HKUST
ECON 3133
Microeconomic Theory II
Semester: Fall 2012/13
Tutor: John Cheng
Email: [email protected]
Office number: Room 2393 (ext.7597)
Office hours: Tue 2:00p.m. 3:00p.m.
Homework 7
1.
1
2.
b.
qi * 1 /(2 b)
i * 1 /( 2 b)
c.
The Hong Kong University of Science and Technology
Microeconomic Theory II
ECON 3133

Fall 2012
Department of Economics, HKUST
ECON 3133
Microeconomic Theory II
Semester: Fall 2012/13
Tutor: John Cheng
Email: [email protected]
Office number: Room 2393 (ext.7597)
Office hours: Tue 2:00p.m. 3:00p.m.
Homework 6
1.
1
Optional ( 6.8)
Three Way Duel (Dixit
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
1: Production Functions (chapter 9)
1. Production Function and its properties
1.1 A production function shows the maximum amount (q) of the good that can be produced
using alternative combinations of capital (k) and labor (l)
q = f(k,l).
1.2 MP, AP, and d
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
CHAPTER 8
STRATEGY AND GAME THEORY
These problems cover a variety of different concepts introduced in the chapter. They range in difficulty from the simplest exercise of finding the Nash equilibrium in a twobytwo matrix to characterizing equilibrium when
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2015
45 Chapter 7: Uncertainty and Information
Analytical Problems 7.9 HARA utility. This problem shows that the harmonic absolute risk aversion utility function is compatible with other frequently used forms. These other forms are just special cases of the HA
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2014
ECON 3133 Microeconomic Theory
Yangguang Huang
Department of Economics
The Hong Kong University of Science and Technology
Huang (HKUST)
ECON 3133 Microeconomic Theory
1 / 62
Course Information
Instructor: Yangguang (Sunny) Huang
Email: [email protected]
Clas
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2014
MICROECONOMICS II  REVIEW QUESTIONS I
1. What is a production function? How does a longrun production function differ from a shortrun
production function?
A production function represents how inputs are transformed into outputs by a firm. We focus on
t
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2014
ECON 3133 Microeconomic Theory
Yangguang Huang
Department of Economics
The Hong Kong University of Science and Technology
Huang (HKUST)
ECON 3133 Microeconomic Theory
1 / 59
Course Information
Instructor: Yangguang (Sunny) Huang
Email: [email protected]
Clas
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2014
Homework 6
Due Nov. 16th in class
Multiple choices
1. The strategy profile in which both players remain silent in the Prisoners Dilemma can be described as
a. non Pareto optimal and unstable.
b. Pareto optimal and unstable.
c. non Pareto optimal and stabl
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2014
Homework 2
Due Sep. 23rd in class
Multiple choices
1. The opportunity cost of producing a bicycle refers to the
a. out of pocket payments made to produce the bicycle.
b. value of the goods that were given up to produce the bicycle.
c. bicycles retail pric
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2014
Homework 1
Due Sep. 14th in class
Multiple choices
1. If more and more labor is employed while keeping all other inputs constant, the marginal physical
productivity of labor will eventually
a. increase.
b. decrease.
c. remain constant.
d. cannot tell from
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2014
ECON 3133 Microeconomic Theory
Yangguang Huang
Department of Economics
The Hong Kong University of Science and Technology
Huang (HKUST)
ECON 3133 Microeconomic Theory
1 / 75
Course Information
Instructor: Yangguang (Sunny) HUANG
Email: [email protected]
Clas
The Hong Kong University of Science and Technology
Macroeconomic theory 1
ECON 3133

Fall 2014
Overview
Producer Theory
Huang (HKUST)
ECON 3133 Microeconomic Theory
14 / 75
Firm
Basic Assumptions of a firm
I
I
a black box turns inputs into outputs
profit maximization
Internal organization of a firm*
Profit maximization for shortrun or longrun?
I