ECON204 MACROECONOMIC ANALYSIS; SESSION 1, 2014
Question 1
Markups
Suppose that the firms markup over costs is 10%. The (medium-run) wage-setting
equation is W=P(1-u), where u is the unemployment rate.
a. What is the real wage as determined by price-setti
ECON309 Solutions to Lecture 7 Problems
1. (PRN Chapter 10, Q4)
Note: Suppose that a consumer travels one mile to go to a store. Since the consumer needs
to return home after purchase, it will cost her 2 ($0.50) = $1 to travel one mile. If 10 mile
street
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING AND CORPORATE GOVERNANCE
ACCG100
WORKSHOP SOLUTIONS due Week 11
AccountingforretailingandinventoryI
Discussion Question 6.3
Discuss how gross profit on sales in calculated for a retail entity. Why
Question 1
AS-AD model and monetary policy
Consider the following model of the economy:
Wages are determined by the following equation W = Pe (2.5 - 10u)
Price is determined by the following equation P=2W
Production function Y=N.
Labour force is fixed
1.
A university has determined that its stu-
dents fall into two categories when it comes
to room and board demand. University plan-
ners call these two types Sleepers and Eaters.
The reservation prices for a dormitory room
and the basic meal plan of the
List three markets that you think are imper-
fectly competitive. Explain your reasoning.
Explain why a perfectly competitive mar-
ket does not reect a setting of strategic
interaction. 3.
Suppose that the total cost of producing
pizzas for the typical rm
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING AND CORPORATE GOVERNANCE
ACCG100
WORKSHOP SOLUTIONS due Week 7
Ethics
Discussion Question 1.9
Ethical conduct on the part of a business is essential to its long term survival. Do you agree?
Why or
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING AND CORPORATE GOVERNANCE
ACCG100
WORKSHOP SOLUTIONS due Week 9
Adjustingentriesandpreparingfinancial
statements
Discussion Question 4.3
During the year, the publishers of Fishing for the Family, a
ECON204 MACROECONOMIC ANALYSIS; SESSION 1, 2014
Question 1
Nontraditional macroeconomic policy: financial policy and quantitative easing
Consider the economy described in Figure 99 in the textbook, and suppose that the IS and
LM relations are:
IS: Y = C(Y
ECON204 MACROECONOMIC ANALYSIS; SESSION 1, 2014
Tutorial for Week 9 on Topics 7 and 8
Question 1
Suppose that the economys production function is
and that the saving rate (s) is equal to 10% and that the rate of depreciation ( ) is equal to
3%. Further, s
In Tuftsville, everyone lives along Main
Street, which is 10 miles long. There are
1,000 people uniformly spread up and down
Main Street, and every day they each buy
a fruit smoothie from one of the two stores
located at either end of Main Street. Cus-
to
ECON204 MACROECONOMIC ANALYSIS; SESSION 1, 2014
Question 1
Suppose that the Phillips curve is given by
where
Also, suppose that is initially equal to zero.
a. What is the natural rate of unemployment implied by equation (1)? (Hint: what do we
know about i
ECON204
MACROECONOMIC
SESSION 1, 2014
ANALYSIS;
Question 1
Nontraditional macroeconomic policy: financial policy and quantitative easing
Consider the economy described in Figure 9 9 in the textbook, and suppose that the
IS and
LM relations are:
IS: Y = C(
Chapter 2 The basics of Demand and Supply
7. The price of good A goes up.
a.
1. A supply curve reveals
a.
b.
c.
d.
the quantity of output consumers are willing to purchase at each possible market price.
the difference between quantity demanded and quantit
Chapter 6 Production
7. The marginal product of an input is
1. A production function defines the output that can be produced
a.
b.
c.
a.
d.
in a given time period if no additional inputs are hired.
e.
the addition to total output due to the addition of on
ECON309 Industrial Organisation
Lecture 9
1
Lecture Outline
1. Price-fixing and repeated games
Collusion and cartels
The incentive to collude
The incentive to cheat
Finitely repeated games
Repeated games with an infinite horizon
Trigger strategies a
ECON309 Industrial Organisation
Lecture 10
1
Lecture Outline
1. Horizontal mergers
Horizontal mergers and the merger paradox
Merger and cost synergies
A leadership game
Horizontal mergers and product differentiation
Merger with price discrimination
2
Norman International has a monopon in
the manufacture of whats-its. Each whom-it
requires exactly one richer as an input and
incurs other variable costs of $5 per unit.
Riehets are made by PepRieh two, which is
also a monopoly. The variable costs of man
u
ECON309 Industrial Organisation
Lecture 6
1
Lecture Outline
1. Static games and Cournot competition
Nash equilibrium
The Cournot model
Cournot-Nash equilibrium
Cournot-Nash equilibrium: many firms
Cournot-Nash equilibrium: different costs
Concentrat
ECON309 Solutions to Lecture 11 Problems
1. (PRN Chapter 16, Q1)
(a) Profits for Norman International are given by revenue minus the cost of Richets and other
variable costs. If a Richet costs pr per unit we obtain
2
2
NI (50 qw )qw pr qw 5qw 50qw qw pr
Suppose that two rms compete in quanti
ties (Couraot) in a market in which demand
is described by: P 2 26029. Each rm
incurs no xed cost but has a marginal cost
otQU.
a. What is the oneperiod Nash equilib
rium market price? What is the output
and prot of
For problems 1, 2. 3, and 4 consider a market
containing four identical rms, each of which
makes an identical product, The inverse demand
for this product is P = 1m Q. where P is
price and Q is aggregate output. The production
costs for rms ll 2, and 3 ar
ECON203 MICROECONOMIC ANALYSIS, S1 2014
TUTORIAL 1 (Week 2)
(Week beginning 10 March 2014)
1. What are the basic assumptions about individual preferences? Explain the meaning of each.
1. Completeness: Preferences are assumed to be complete, thus consumers