Intermediate Microeconomics Video Handbook, IM6 Faculty, 2014


 Frank McCormick
 1 years ago
 Views:
Transcription
1 A. MATH TOPICS 1. Calculus Review Machina 2. Elasticity Machina 3. Level Curves Machina a. Level Curves of a Function Machina b. Slopes of Level Curves Machina 4. Scale Properties of Functions a. Scale Properties of Functions Machina b. Scale Properties of Functions (Calculus Applications) Machina 5. Solving Optimization Problems a. General Structure of Optimization Problems Machina b. Unconstrained Optimization Machina c. Constrained Optimization Machina d. Lagrangians (Calculus) Machina e. Corner Solutions Machina 6. Comparative Statics a. Comparative Statics of Solution Functions (Calculus) Machina b. Comparative Statics of Optimal Values: The Envelope Theorem (Calculus) Machina 7. Interest Rates and the Discounted Present Value Machina B. BASICS 1. Circular Flow of Economic Activity Machina 2. Stocks, Flows and the Dimensions of Economic Activity Machina 3. Supply, Demand and Markets Machina C. THEORY OF THE CONSUMER 1. Preferences, Utility Functions and Indifference Curves a. Commodities and Commodity Bundles Famulari b. Preferences and Properties of Preference Rankings Famulari c. Utility Functions Famulari d. Monotonic Transformations of Utility Famulari e. Marginal Utility Famulari f. Marginal Utility (Calculus) Famulari g. Indifference Curves Famulari h. Properties of Indifference Curves Famulari i. Marginal Rate of Substitution Famulari j. Marginal Rate of Substitution (Calculus) Famulari k. Common Types of Preferences Famulari 2. Utility Maximization Subject to a Budget Constraint a. Budget Constraints Famulari b. Utility Maximization Subject to a Budget Constraint Famulari c. Utility Maximization Subject to a Budget Constraint (Calculus) Famulari d. General Properties of Ordinary Demand Functions and Indirect Utility Functions Famulari e. Ordinary ( Marshallian ) Demand Curves Famulari f. Demand Functions for CobbDouglas Preferences Famulari g. Demand Functions for Perfect Complements Famulari h. Demand Functions for Perfect Substitutes Famulari i. Utility Maximization with Corner Solutions Famulari j. Budget Constraints with Kinks Famulari k. Utility Maximization with Kinked Budget Constraints Famulari l. Budget Constraints with Endowments Famulari 3. Comparative Statics of Demand: Income Changes a. Comparative Statistics of Demand: Income Changes Famulari by IM6 Group (Cullen, Famulari, Galperti, Machina, Niehaus, Watson)
2 b. IncomeConsumption Locus, Engel Curves Famulari c. Income Elasticity Famulari d. Comparative Statics of Demand: Income Changes (Calculus) Famulari 4. Comparative Statics of Demand: Price Changes Famulari a. PriceConsumption Locus and Ordinary Demand Curves Famulari b. Own Price Elasticity Famulari d. Comparative Statics of Demand: Own Price Change (Calculus) Famulari e. Comparative Statics of Demand: CrossPrice Changes Famulari 5. Compensated Price Changes, Compensated ( Hicksian ) Demand Curves and Demand Functions a. Compensated Price Changes Famulari b. Compensated Price Change (Calculus) Famulari c. Compensated Price Change Example: CobbDouglas Preferences Famulari d. Compensated Price Change Example: Perfect Complements Preferences Famulari e. Compensated Price Change Example: Perfect Substitutes Famulari 6. The Slutsky Equation a. Income and Substitution Effects Machina b. The Slutsky Equation Machina c. Proof of the Slutsky Equation (Calculus) Machina d. Applications from the Slutsky Equation Machina 7. Consumer Surplus, Equivalent and Compensating Variation a. Equivalent and Compensating Variation Famulari b. Consumer Surplus Famulari 8. Supply of Labor: The LaborLeisure Decision a. ConsumptionLeisure Indifference Curves Famulari b. ConsumptionLeisure Budget Constraint and Optimal Supply of Labor Famulari c. Analysis of the Optimal Supply of Labor (Calculus) Famulari d. Comparative Statics of Labor Supply: Income and Substitution Effects Famulari e. Backward Bending Labor Supply Curves Famulari 9. Supply of Saving: The ConsumptionSavings Decision a. Intertemporal Income and Consumption Streams Famulari b. The ConsumptionSavings Decision Famulari c. Analysis of the ConsumptionSavings Decision (Calculus) Famulari d. Comparative Statics of Consumption and Savings: Income and Substitution Effects Famulari e. Effect of Interest Rate Increase on Consumer Who is Saving Famulari f. Effect of Interest Rate Increase on Consumer Who is Borrowing Famulari g. ConsumptionSavings: Borrow at Higher Interest Rates Famulari 10. Decision Making Under Uncertainty a. Expected Value and the St. Petersburg Paradox Machina b. Expected Utility Machina c. Risk Aversion Machina d. Demand for Insurance Machina e. Demand for Risky Assets (Calculus) Machina f. Measures of Risk Aversion (Calculus) Machina D. THEORY OF THE FIRM 1. The Firm and Production a. Firms as Production Technologies Watson b. Total Product Watson c. Average Product Watson d. Marginal Product Watson e. Properties of Average and Marginal Product Watson f. Formal Definition of Marginal Product and Examples (Calculus) Watson g. A Note on Timing and Inputs Watson h. Isoquants Watson by IM6 Group (Cullen, Famulari, Galperti, Machina, Niehaus, Watson)
3 i. Marginal Rate of Technical Substitution Watson j. Formal Definition of Marginal Rate of Technical Substitution (Calculus) Watson k. Examples of MRTS Calculations (Calculus) Watson l. Sufficient Conditions for Diminishing MRTS (Calculus) Watson m. Returns to Scale and Homogeneity Watson 2. Cost Functions a. Derivation of Cost Watson b. LongRun and ShortRun Decisions Watson c. ShortRun Cost Watson d. ShortRun Cost Functions: Examples Watson e. LongRun Cost Minimization Watson f. LongRun Cost Minimization in Standard Cases Watson g. The Lagrangian Approach to LongRun Cost Minimization (Calculus) Watson h. LongRun vs. ShortRun Costs Watson i. Marginal and Average Cost Watson j. Formal Definition of Marginal Cost (Calculus) Watson k. Examples of Cost Function Calculations (Calculus) Watson l. Economies of Scale Watson 3. Optimal Supply in Competitive Markets a. The Notion of Supply and the Supply Curve Watson b. Marginal Conditions for ProfitMaximizing Output Choices Watson c. First and SecondOrder Conditions for Supply (Calculus) Watson d. Effect on Profit of a Price Change (Calculus) Watson e. ShutDown and Exit Decisions Watson f. Supply Curve Watson g. ShortRun Supply: Numerical Example Galperti h. LongRun Supply: Numerical Example Galperti i. Market Supply Curve Galperti j. Caveats for LongRun Supply Galperti k. Demand for Factors of Production Galperti E. EQUILIBRIUM IN COMPETITIVE MARKETS 1. Competitive Equilibrium in a Market a. The Notion of Partial Equilibrium  A Single Market Watson b. ShortRun vs. LongRun Equilibrium Watson c. Aggregate Supply and Equilibrium: Numerical Example  SHORT RUN Galperti d. Aggregate Supply and Equilibrium: Numerical Example  LONG RUN Galperti e. Comparative Statics in Competitve Markets: Supply and Demand Shifts Galperti f. Welfare in Partial Equilibrium Galperti g. Competitive Equilibrium and Efficiency Galperti h. Taxes as Market Distortions Galperti i. Market Distortions Not Involving Taxes Galperti j. Taxes: Numerical Example Galperti 2. General Welfare Analysis a. The Concept of General Equilibrium Galperti b. The Edgeworth Box Galperti c. Examples of the Edgeworth Box Galperti d. Pareto Efficiency Galperti e. The Contract Curve Galperti f. Example of Calculating a Contract Curve (Calculus) Galperti g. Demand and Trade in Edgeworth Box Galperti h. Equilibrium in the Edgeworth Box Galperti i. Examples of Equilibrium in the Edgeworth Box (Calculus) Galperti j. The First Welfare Theorem Galperti by IM6 Group (Cullen, Famulari, Galperti, Machina, Niehaus, Watson)
4 k. The Second Welfare Theorem Galperti l. Edgeworth Box with Two Firms Galperti m. General Equilibrium with Firms and Consumers Galperti F. BEYOND THE NEOCLASSICAL MODEL 1. Monopoly Definition and Origins Cullen 2. Monopoly Uniform Pricing a. Monopoly Uniform Pricing: Marginal Revenue Cullen b. Monopoly Uniform Pricing: Derivation of Marginal Revenue (Calculus) Cullen c. Monopoly Uniform Pricing: Profit Maximization Cullen d. Monopoly Uniform Pricing: Analysis of Profit Maximization (Calculus) Cullen e. Monopoly Uniform Pricing: Market Power Cullen f. Monopoly Uniform Pricing: Inefficiency Cullen g. Monopoly Uniform Pricing: Analysis of Inefficiency (Calculus) Cullen 3. Monopoly and Government Interventions a. Regulating a Monopolist Niehaus b. Taxing and Subsidizing a Monopolist Niehaus c. Analysis of Taxes and Subsidies (Calculus) Niehaus 4. Price Discrimination a. Price Discrimination: Definition and Types Cullen b. First Degree Price Discrimination Cullen c. Analysis of First Degree Price Discrimination (Calculus) Cullen d. Second Degree Price Discrimination Cullen e. Analysis of Second Degree Price Discrimination (Calculus) Cullen f. Third Degree Price Discrimination Cullen g. Analysis of Third Degree Price Discrimination (Calculus) Cullen h. TwoPart Tariff Pricing Cullen i. Analysis of FirstDegree Price Discrimination with a TwoPart Tariff (Calculus) Cullen j. Analysis of SecondDegree Price Discrimination with a TwoPart Tariff (Calculus) Cullen k. Price Discrimination through Bundling Cullen 5. Game Theory  Overview a. Strategic Settings and the Definition of Game Theory Watson b. Normal Form and Extensive Form Representations Watson c. Strategy Definition and Beliefs Watson d. Behavioral Theories and Solution Concepts Watson 6. Static Games a. Dominance Watson b. Common Knowledge c. Iterated Dominance Watson d. Nash Equilibrium Watson e. Mixed Strategy Nash Equilibrium Watson f. Examples of Dominance and Nash Equilibrium Watson 7. Sequential Games a. Notes on Normal and Extensive Forms Watson b. Nash Equilibria and Incredible Threats Watson c. Subgame Perfect Nash Equilibrium and Backward Induction  The Basics Watson d. Examples of Backward Induction and Subgame Perfect Equilibrium Watson e. FirstMover Advantage/Disadvantage Watson 8. Repeated Games a. Finitely Repeated Games  Rudimentary Analysis Watson b. Infinitely Repeated Games  Rudimentary Analysis Watson 9. Oligopoly Definitions and Overview of Models (Calculus) Niehaus 10. Oligopoly Models with Homogenous goods a. Cartel Model Niehaus by IM6 Group (Cullen, Famulari, Galperti, Machina, Niehaus, Watson)
5 b. Analysis of the Cartel Model (Calculus) Niehaus c. Cournot Duopoly Model (Calculus) Niehaus d. Cournot Duopoly Example (Calculus) Niehaus e. Cournot Model with N Firms (Calculus) Niehaus f. Stackelberg Model (Calculus) Niehaus g. Stackelberg with Entry Deterrence (Calculus) Niehaus h. Graphical Comparison of Models (Calculus) Niehaus i. Bertrand Price Competition Niehaus 11. Oligopoly Models with Product Differentiation a. Direct and Inverse Demand Systems with Product Differentiation Niehaus b. Cournot Model with Product Differentiation (Calculus) Niehaus c. Bertrand Model with Product Differentiation (Calculus) Niehaus d. Comparing Cournot and Bertrand Soltutions with Product Differentiation (Calculus) Niehaus 12. Externalities a. Externalities: Definition and Typology Cullen b. Externalities: Inefficiency of Market Outcomes Cullen c. Externalities: Role of Market Structure Cullen d. Solutions: Mergers  Solving Externalities through Mergers (Calculus) Cullen e. Solving Externalities by Establishing Property Rights Cullen f. Solving Externalities Through Price and Quantity Regulation Cullen g. Analysis of Cap and Trade Regulation (Calculus) Cullen 13. Public Goods a. Public Goods: Definition and Efficient Provision Cullen b. Analysis of Efficient Public Goods Provision (Calculus) Cullen c. Analysis of Private Provision of Public Goods (Calculus) Cullen d. Analysis of Public Good Provision via Benefit Taxation (Calculus) Cullen e. Analysis of Public Good Provision via Political Competition (Calculus) Cullen 14. Asymmetric Information: Adverse Selection a. Definition and Efficiency Consequences of Adverse Selection Niehaus b. Screening as a Solution to Adverse Selection Niehaus c. Signaling as a Solution to Adverse Selection Niehaus 15. Asymmetric Information: Moral Hazard a. Definition and Consequences of Moral Hazard Niehaus b. The General PrincipalAgent Problem (Calculus) Niehaus c. Monitoring as a Solution to Moral Hazard Niehaus d. Incentive Contracts as a Solution to Moral Hazard (Calculus) Niehaus e. Optimal Contract with Moral Hazard and Risk Aversion (Calculus) Niehaus by IM6 Group (Cullen, Famulari, Galperti, Machina, Niehaus, Watson)
Robert S. Pindyck. Massachusetts Institute of Technology
MICROECONOMICS Robert S. Pindyck Massachusetts Institute of Technology Daniel L. Rubinfeld University of California, Berkeley Prentice Hall Interna ional, Inc. London New York Toronto Sydney Tokyo Singapore
More informationPrinciples of Economics
Principles of Economics (8 th Edition) Dr. H. S. Agarwal Professor of Economics (Retd.) Agra College, AGRA professional publishing Contents JSASIC CONCEPTS^ 1. The Scope and Nature of Economics 131 Introduction;
More information1 st Exam. 7. Cindy's crossprice elasticity of magazine demand with respect to the price of books is
1 st Exam 1. Marginal utility measures: A) the total utility of all your consumption B) the total utility divided by the price of the good C) the increase in utility from consuming one additional unit
More informationCurriculum and Contents: DiplomProgram in Business Administration (Year 1 and Year 2)
Business School DeAN S OFFICE INTERNATIONAL RELATIONS L 5, 5 68131 Mannheim Germany Phone +49 (0) 6 21 1 811474 Fax +49 (0) 6 21 1 811471 international@bwl.unimannheim.de www.bwl.unimannheim.de Curriculum
More informationNew Technology and Profits
Another useful comparative statics exercise is to determine how much a firm would pay to reduce its marginal costs to that of its competitor. This will simply be the difference between its profits with
More informationECONOMIC THEORY AND OPERATIONS ANALYSIS
WILLIAM J. BAUMOL Professor of Economics Princeton University ECONOMIC THEORY AND OPERATIONS ANALYSIS Second Edition PrenticeHall, I Inc. Engkwood Cliffs, New Jersey CONTENTS PART 7 ANALYTIC TOOLS OF
More informationIntroduction to Industrial Organization
Introduction to Industrial Organization The MIT Press. Cambridge, Massachusetts London, England Second printing, 2002 2000 Massachusetts Institute of Technology All rights reserved. No part of this book
More informationTable of Contents MICRO ECONOMICS
economicsentrance.weebly.com Basic Exercises Micro Economics AKG 09 Table of Contents MICRO ECONOMICS Budget Constraint... 4 Practice problems... 4 Answers... 4 Supply and Demand... 7 Practice Problems...
More informationManagerial Economics & Business Strategy Chapter 9. Basic Oligopoly Models
Managerial Economics & Business Strategy Chapter 9 Basic Oligopoly Models Overview I. Conditions for Oligopoly? II. Role of Strategic Interdependence III. Profit Maximization in Four Oligopoly Settings
More informationCompetition and Regulation. Lecture 2: Background on imperfect competition
Competition and Regulation Lecture 2: Background on imperfect competition Monopoly A monopolist maximizes its profits, choosing simultaneously quantity and prices, taking the Demand as a contraint; The
More informationChapter 9 Basic Oligopoly Models
Managerial Economics & Business Strategy Chapter 9 Basic Oligopoly Models McGrawHill/Irwin Copyright 2010 by the McGrawHill Companies, Inc. All rights reserved. Overview I. Conditions for Oligopoly?
More informationMICROECONOMICS: DECISIONS
ECON 200A MICROECONOMICS: DECISIONS Fall 2015 Tuesday, Thursday 9:30am11:20pm Economics Bldg 200 Prof. Mark Machina Office: ECON 217 Office Hours: Tues,Thu 122pm TA: Paul Feldman ECON 119 Wed 9:0011:00
More informationOligopoly and Strategic Pricing
R.E.Marks 1998 Oligopoly 1 R.E.Marks 1998 Oligopoly Oligopoly and Strategic Pricing In this section we consider how firms compete when there are few sellers an oligopolistic market (from the Greek). Small
More informationEconomics II: Micro Fall 2009 Exercise session 5. Market with a sole supplier is Monopolistic.
Economics II: Micro Fall 009 Exercise session 5 VŠE 1 Review Optimal production: Independent of the level of market concentration, optimal level of production is where MR = MC. Monopoly: Market with a
More informationContemporary Industrial Organization
Contemporary Industrial Organization A Quantitative Approach Lynne Pepall Dan Richards George Norman WILEY John Wiley & Sons, Inc. Contents About the Authors Preface xiii xv Part I Microeconomic Foundations
More informationOligopoly: How do firms behave when there are only a few competitors? These firms produce all or most of their industry s output.
Topic 8 Chapter 13 Oligopoly and Monopolistic Competition Econ 203 Topic 8 page 1 Oligopoly: How do firms behave when there are only a few competitors? These firms produce all or most of their industry
More informationEfficiency, Optimality, and Competitive Market Allocations
Efficiency, Optimality, and Competitive Market Allocations areto Efficient Allocations An allocation of resources is areto efficient if it is not possible to reallocate resources in economy to make one
More informationThinkwell s Homeschool Economics Course Lesson Plan: 36 weeks
Thinkwell s Homeschool Economics Course Lesson Plan: 36 weeks Welcome to Thinkwell s Homeschool Economics! We re thrilled that you ve decided to make us part of your homeschool curriculum. This lesson
More information5 Market Games For Teaching Economics
5 Market Games For Teaching Economics Progression 5 Market Games from website economicsgames.com To be played separately or as a sequence: Market Game 1: Sunk costs, monopoly, and introduction to the
More information12 Monopolistic Competition and Oligopoly
12 Monopolistic Competition and Oligopoly Read Pindyck and Rubinfeld (2012), Chapter 12 09/04/2015 CHAPTER 12 OUTLINE 12.1 Monopolistic Competition 12.2 Oligopoly 12.3 Price Competition 12.4 Competition
More informationOligopoly: Cournot/Bertrand/Stackelberg
Outline Alternative Market Models Wirtschaftswissenschaften Humboldt Universität zu Berlin March 5, 2006 Outline 1 Introduction Introduction Alternative Market Models 2 Game, Reaction Functions, Solution
More informationDo not open this exam until told to do so.
Do not open this exam until told to do so. Department of Economics College of Social and Applied Human Sciences K. Annen, Winter 004 Final (Version ): Intermediate Microeconomics (ECON30) Solutions Final
More informationLecture 2 Dynamic Equilibrium Models : Finite Periods
Lecture 2 Dynamic Equilibrium Models : Finite Periods 1. Introduction In macroeconomics, we study the behavior of economywide aggregates e.g. GDP, savings, investment, employment and so on  and their
More informationExercises for Industrial Organization Master de Economía Industrial 20122013. Matilde Pinto Machado
Exercises for Industrial Organization Master de Economía Industrial 20122013 Matilde Pinto Machado September 11, 2012 1 Concentration Measures 1. Imagine two industries A and B with concentration curves
More informationR&D cooperation with unitelastic demand
R&D cooperation with unitelastic demand Georg Götz This draft: September 005. Abstract: This paper shows that R&D cooperation leads to the monopoly outcome in terms of price and quantity if demand is
More informationUNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES. Monopolistic Competition
UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES Monopolistic Competition Market Structure Perfect Competition Pure Monopoly Monopolistic Competition Oligopoly Duopoly Monopoly The further right on
More informationChapter 11 Pricing Strategies for Firms with Market Power
Managerial Economics & Business Strategy Chapter 11 Pricing Strategies for Firms with Market Power McGrawHill/Irwin Copyright 2010 by the McGrawHill Companies, Inc. All rights reserved. Overview I. Basic
More informationPrice competition with homogenous products: The Bertrand duopoly model [Simultaneous move price setting duopoly]
ECON9 (Spring 0) & 350 (Tutorial ) Chapter Monopolistic Competition and Oligopoly (Part ) Price competition with homogenous products: The Bertrand duopoly model [Simultaneous move price setting duopoly]
More informationMicroeconomics. Lecture Outline. Claudia Vogel. Winter Term 2009/2010. Part III Market Structure and Competitive Strategy
Microeconomics Claudia Vogel EUV Winter Term 2009/2010 Claudia Vogel (EUV) Microeconomics Winter Term 2009/2010 1 / 25 Lecture Outline Part III Market Structure and Competitive Strategy 12 Monopolistic
More informationEcon 111 (04) 2nd Midterm A
Econ 111 (04) 2nd Midterm A MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which one of the following does not occur in perfect competition? A)
More informationWeek 7  Game Theory and Industrial Organisation
Week 7  Game Theory and Industrial Organisation The Cournot and Bertrand models are the two basic templates for models of oligopoly; industry structures with a small number of firms. There are a number
More informationCOMMERCE MENTORSHIP PROGRAM COMM295: MANAGERIAL ECONOMICS FINAL EXAM REVIEW SOLUTION KEY
COMMERCE MENTORSHIP PROGRAM COMM295: MANAGERIAL ECONOMICS FINAL EXAM REVIEW SOLUTION KEY WR1 SamIAm is a local restaurant chain located in Vancouver. It is considering different pricing strategies for
More informationQE1: Economics Notes 1
QE1: Economics Notes 1 Box 1: The Household and Consumer Welfare The final basket of goods that is chosen are determined by three factors: a. Income b. Price c. Preferences Substitution Effect: change
More informationSummary Chapter 12 Monopoly
Summary Chapter 12 Monopoly Defining Monopoly  A monopoly is a market structure in which a single seller of a product with no close substitutes serves the entire market  One practical measure for deciding
More informationMarket is a network of dealings between buyers and sellers.
Market is a network of dealings between buyers and sellers. Market is the characteristic phenomenon of economic life and the constitution of markets and market prices is the central problem of Economics.
More informationMICROECONOMICS AND POLICY ANALYSIS  U8213 Professor Rajeev H. Dehejia Class Notes  Spring 2001
MICROECONOMICS AND POLICY ANALYSIS  U8213 Professor Rajeev H. Dehejia Class Notes  Spring 2001 General Equilibrium and welfare with production Wednesday, January 24 th and Monday, January 29 th Reading:
More information2. Information Economics
2. Information Economics In General Equilibrium Theory all agents had full information regarding any variable of interest (prices, commodities, state of nature, cost function, preferences, etc.) In many
More informationCHAPTER 6 MARKET STRUCTURE
CHAPTER 6 MARKET STRUCTURE CHAPTER SUMMARY This chapter presents an economic analysis of market structure. It starts with perfect competition as a benchmark. Potential barriers to entry, that might limit
More informationManagerial Economics and Organizational Architecture
Managerial Economics and Organizational Architecture Fifth Edition JAMES A. BRICKLEY CLIFFORD W. SMITH JEROLD L. ZIMMERMAN William E. Simon Graduate School of Business Administration University ofrochester
More informationUnit 7. Firm behaviour and market structure: monopoly
Unit 7. Firm behaviour and market structure: monopoly Learning objectives: to identify and examine the sources of monopoly power; to understand the relationship between a monopolist s demand curve and
More informationPrice Competition Under Product Differentiation
Competition Under Product Differentiation Chapter 10: Competition 1 Introduction In a wide variety of markets firms compete in prices Internet access Restaurants Consultants Financial services Without
More informationMarket Structure: Duopoly and Oligopoly
WSG10 7/7/03 4:24 PM Page 145 10 Market Structure: Duopoly and Oligopoly OVERVIEW An oligopoly is an industry comprising a few firms. A duopoly, which is a special case of oligopoly, is an industry consisting
More informationRutgers University Economics 102: Introductory Microeconomics Professor Altshuler Fall 2003
Rutgers University Economics 102: Introductory Microeconomics Professor Altshuler Fall 2003 Answers to Problem Set 11 Chapter 16 2. a. If there were many suppliers of diamonds, price would equal marginal
More informationEconomics 101 Final Exam. May 12, 2008. Instructions
Economics 101 Spring 2008 Professor Wallace Economics 101 Final Exam May 12, 2008 Instructions Do not open the exam until you are instructed to begin. You will need a #2 lead pencil. If you do not have
More informationECON 312: Oligopolisitic Competition 1. Industrial Organization Oligopolistic Competition
ECON 312: Oligopolisitic Competition 1 Industrial Organization Oligopolistic Competition Both the monopoly and the perfectly competitive market structure has in common is that neither has to concern itself
More informationUtility Maximization
Utility Maimization Given the consumer's income, M, and prices, p and p y, the consumer's problem is to choose the a ordable bundle that maimizes her utility. The feasible set (budget set): total ependiture
More informationREVIEW OF MICROECONOMICS
ECO 352 Spring 2010 Precepts Weeks 1, 2 Feb. 1, 8 REVIEW OF MICROECONOMICS Concepts to be reviewed Budget constraint: graphical and algebraic representation Preferences, indifference curves. Utility function
More informationChapter 16 Monopolistic Competition and Oligopoly
Chapter 16 Monopolistic Competition and Oligopoly Market Structure Market structure refers to the physical characteristics of the market within which firms interact It is determined by the number of firms
More informationFigure: Computing Monopoly Profit
Name: Date: 1. Most electric, gas, and water companies are examples of: A) unregulated monopolies. B) natural monopolies. C) restrictedinput monopolies. D) sunkcost monopolies. Use the following to answer
More informationB.A. PROGRAMME DISCIPLINE COURSE ECONOMICS. COURSE CONTENTS (Effective from the Academic Year 20112012 onwards)
B.A. PROGRAMME DISCIPLINE COURSE ECONOMICS COURSE CONTENTS (Effective from the Academic Year 20112012 onwards) DEPARTMENT OF ECONOMICS UNIVERSITY OF DELHI DELHI 1 Syllabus for B.A. Programme  Economics
More informationAN INTRODUCTION TO GAME THEORY
AN INTRODUCTION TO GAME THEORY 2008 AGIInformation Management Consultants May be used for personal purporses only or by libraries associated to dandelon.com network. MARTIN J. OSBORNE University of Toronto
More informationVariable Cost. Marginal Cost. Average Variable Cost 0 $50 $50 $0     1 $150 A B C D E F 2 G H I $120 J K L 3 M N O P Q $120 R
Class: Date: ID: A Principles Fall 2013 Midterm 3 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Trevor s Tire Company produced and sold 500 tires. The
More informationManagerial Economics and Business Strategy
SEVENTH EDITION Managerial Economics and Business Strategy Michael R. Baye Bert Elwert Professor of Business Economics & Public Policy Kelley School of Business Indiana University Me Grauu Hill CONTENTS
More informationScheme of B.A. (Economics Hons.) Semester System
Scheme of B.A. (Economics Hons.) Semester System B.A.Part1 Semester1 Nomenclature Paper101 Micro Economics I Paper102 Macro Economics I Semester2 Paper203 Micro Economics II Paper204 Macro Economics
More informationECON 201 Section 002 Principles of Microeconomics Fall 2014 Tuesday & Thursday 12:15, Cuneo, Room 002
Dr. Roy Gobin Office: 7735088499 Email: rgobin@luc.edu Crown Center Rm#434 cubicle F Office Hours: Tues/Thu 3:50pm 4:20pm http://www.luc.edu/quinlan/faculty/terrygobin Catalog Description ECON 201 Section
More informationPreTest Chapter 23 ed17
PreTest Chapter 23 ed17 Multiple Choice Questions 1. The kinkeddemand curve model of oligopoly: A. assumes a firm's rivals will ignore a price cut but match a price increase. B. embodies the possibility
More informationEC508: Microeconomic Theory Midterm 3
EC508: Microeconomic Theory Midterm 3 Instructions: Neatly write your name on the top right hand side of the exam. There are 25 points possible. Your exam solution is due Tuesday Nov 24, 2015 at 5pm. You
More informationPractice Multiple Choice Questions Answers are bolded. Explanations to come soon!!
Practice Multiple Choice Questions Answers are bolded. Explanations to come soon!! For more, please visit: http://courses.missouristate.edu/reedolsen/courses/eco165/qeq.htm Market Equilibrium and Applications
More information4. Market Structures. Learning Objectives 463. Market Structures
1. Supply and Demand: Introduction 3 2. Supply and Demand: Consumer Demand 33 3. Supply and Demand: Company Analysis 43 4. Market Structures 63 5. Key Formulas 81 2014 Allen Resources, Inc. All rights
More informationMikroekonomia B by Mikolaj Czajkowski. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Mikroekonomia B by Mikolaj Czajkowski Test 12  Oligopoly Name Group MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The market structure in which
More informationEconomics 203: Intermediate Microeconomics I Lab Exercise #11. Buy Building Lease F1 = 500 F1 = 750 Firm 2 F2 = 500 F2 = 400
Page 1 March 19, 2012 Section 1: Test Your Understanding Economics 203: Intermediate Microeconomics I Lab Exercise #11 The following payoff matrix represents the longrun payoffs for two duopolists faced
More informationLecture 4: Nash equilibrium in economics: monopolies and duopolies
Lecture : Nash equilibrium in economics: monopolies and duopolies We discuss here an application of Nash equilibrium in economics, the Cournot s duopoly model. This is a very classical problem which in
More informationManagerial Economics. 1 is the application of Economic theory to managerial practice.
Managerial Economics 1 is the application of Economic theory to managerial practice. 1. Economic Management 2. Managerial Economics 3. Economic Practice 4. Managerial Theory 2 Managerial Economics relates
More information9.1 Cournot and Bertrand Models with Homogeneous Products
1 Chapter 9 Quantity vs. Price Competition in Static Oligopoly Models We have seen how price and output are determined in perfectly competitive and monopoly markets. Most markets are oligopolistic, however,
More informationChapter 6 MULTIPLECHOICE QUESTIONS
Chapter 6 MULTIPLECHOICE QUETION 1. Which one of the following is generally considered a characteristic of a perfectly competitive labor market? a. A few workers of varying skills and capabilities b.
More informationChapter 12 Monopolistic Competition and Oligopoly
Chapter Monopolistic Competition and Oligopoly Review Questions. What are the characteristics of a monopolistically competitive market? What happens to the equilibrium price and quantity in such a market
More informationCONTENTS. Introduction to Microeconomics 1 PART ONE. CHAPTER 1 Introduction 3
CONTENTS List of Examples and At the Frontier Preface xxxiii About the Author xxxix xxvii PART ONE Introduction to Microeconomics 1 CHAPTER 1 Introduction 3 1.1 Wants and Scarcity 4 Can Human Wants Ever
More informationThe New Trade Theory. Monopoly and oligopoly in trade. Luca De Benedictis 1. Topic 3. 1 University of Macerata
The New Trade Theory Monopoly and oligopoly in trade Luca De Benedictis 1 1 University of Macerata Topic 3 A new generation of models Main characteristics and insights: Countries do not trade, rms do.
More informationSubject CT7 Business Economics Core Technical Syllabus
Subject CT7 Business Economics Core Technical Syllabus for the 2016 exams 1 June 2015 Aim The aim of the Business Economics subject is to introduce students to the core economic principles and how these
More informationTheoretical Tools of Public Economics. Part2
Theoretical Tools of Public Economics Part2 Previous Lecture Definitions and Properties Utility functions Marginal utility: positive (negative) if x is a good ( bad ) Diminishing marginal utility Indifferences
More informationMICROECONOMICS II PROBLEM SET III: MONOPOLY
MICROECONOMICS II PROBLEM SET III: MONOPOLY EXERCISE 1 Firstly, we analyze the equilibrium under the monopoly. The monopolist chooses the quantity that maximizes its profits; in particular, chooses the
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Chap 13 Monopolistic Competition and Oligopoly These questions may include topics that were not covered in class and may not be on the exam. MULTIPLE CHOICE. Choose the one alternative that best completes
More informationI. Noncooperative Oligopoly
I. Noncooperative Oligopoly Oligopoly: interaction among small number of firms Conflict of interest: Each firm maximizes its own profits, but... Firm j s actions affect firm i s profits Example: price
More informationEcn 221  Unit 10 Monopolistic Competition & Oligopoly
Ecn 221  Unit 10 Monopolistic Competition & Oligopoly An industry characterized by monopolistic competition is similar to the case of perfect competition in that there are many firms, and entry into the
More informationChoose the single best answer for each question. Do all of your scratchwork in the side and bottom margins of pages.
Econ 0, Sections 3 and 4, S, Schroeter Exam #4, Special code = 000 Choose the single best answer for each question. Do all of your scratchwork in the side and bottom margins of pages.. Gordon is the owner
More informationNotes  Gruber, Public Finance Chapter 20.3 A calculation that finds the optimal income tax in a simple model: Gruber and Saez (2002).
Notes  Gruber, Public Finance Chapter 20.3 A calculation that finds the optimal income tax in a simple model: Gruber and Saez (2002). Description of the model. This is a special case of a Mirrlees model.
More informationAn increase in the number of students attending college. shifts to the left. An increase in the wage rate of refinery workers.
1. Which of the following would shift the demand curve for new textbooks to the right? a. A fall in the price of paper used in publishing texts. b. A fall in the price of equivalent used text books. c.
More informationECON101 STUDY GUIDE 7 CHAPTER 14
ECON101 STUDY GUIDE 7 CHAPTER 14 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An oligopoly firm is similar to a monopolistically competitive
More informationA. a change in demand. B. a change in quantity demanded. C. a change in quantity supplied. D. unit elasticity. E. a change in average variable cost.
1. The supply of gasoline changes, causing the price of gasoline to change. The resulting movement from one point to another along the demand curve for gasoline is called A. a change in demand. B. a change
More informationWeek 1 Efficiency in Production and in Consumption and the Fundamental Theorems of Welfare Economics
1. Introduction Week 1 Efficiency in Production and in Consumption and the Fundamental Theorems of Welfare Economics Much of economic theory of the textbook variety is a celebration of the free market
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Economics 103 Spring 2012: Multiple choice review questions for final exam. Exam will cover chapters on perfect competition, monopoly, monopolistic competition and oligopoly up to the Nash equilibrium
More informationManagerial Economics & Business Strategy Chapter 8. Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets
Managerial Economics & Business Strategy Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets I. Perfect Competition Overview Characteristics and profit outlook. Effect
More informationECONOMIC QUESTIONS FOR THE MASTER'S EXAM
ECONOMIC QUESTIONS FOR THE MASTER'S EXAM Introduction 1. What is economics? Discuss the purpose and method of work of economists. Consider observation, induction, deduction and scientific criticism. 2.
More information2. Efficiency and Perfect Competition
General Equilibrium Theory 1 Overview 1. General Equilibrium Analysis I Partial Equilibrium Bias 2. Efficiency and Perfect Competition 3. General Equilibrium Analysis II The Efficiency if Competition The
More informationEnvelope Theorem. Kevin Wainwright. Mar 22, 2004
Envelope Theorem Kevin Wainwright Mar 22, 2004 1 Maximum Value Functions A maximum (or minimum) value function is an objective function where the choice variables have been assigned their optimal values.
More informationAll these models were characterized by constant returns to scale technologies and perfectly competitive markets.
Economies of scale and international trade In the models discussed so far, differences in prices across countries (the source of gains from trade) were attributed to differences in resources/technology.
More informationAP Microeconomics Review
AP Microeconomics Review 1. Firm in Perfect Competition (LongRun Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry 3. Natural Monopoly with FairReturn
More informationMonopolistic Competition
In this chapter, look for the answers to these questions: How is similar to perfect? How is it similar to monopoly? How do ally competitive firms choose price and? Do they earn economic profit? In what
More informationNONCOOPERATIVE OLIGOPOLY MODELS
NONCOOPERATIVE OLIGOPOLY MODELS 1. INTRODUCTION AND DEFINITIONS Definition 1 (Oligopoly). Noncooperative oligopoly is a market where a small number of firms act independently but are aware of each other
More informationOligopoly. Models of Oligopoly Behavior No single general model of oligopoly behavior exists. Oligopoly. Interdependence.
Oligopoly Chapter 162 Models of Oligopoly Behavior No single general model of oligopoly behavior exists. Oligopoly An oligopoly is a market structure characterized by: Few firms Either standardized or
More informationEconomics 165 Winter 2002 Problem Set #2
Economics 165 Winter 2002 Problem Set #2 Problem 1: Consider the monopolistic competition model. Say we are looking at sailboat producers. Each producer has fixed costs of 10 million and marginal costs
More informationEndogenous Growth Theory
Chapter 3 Endogenous Growth Theory 3.1 OneSector Endogenous Growth Models 3.2 Twosector Endogenous Growth Model 3.3 Technological Change: Horizontal Innovations References: Aghion, P./ Howitt, P. (1992),
More informationMarket Structure: Perfect Competition and Monopoly
WSG8 7/7/03 4:34 PM Page 113 8 Market Structure: Perfect Competition and Monopoly OVERVIEW One of the most important decisions made by a manager is how to price the firm s product. If the firm is a profit
More informationEcon 101, section 3, F06 Schroeter Exam #4, Red. Choose the single best answer for each question.
Econ 101, section 3, F06 Schroeter Exam #4, Red Choose the single best answer for each question. 1. Profit is defined as a. net revenue minus depreciation. *. total revenue minus total cost. c. average
More informationc. In the stock market, there is good information and thousands of buyers and sellers. We expect, in general, efficient outcomes.
Chapter 3 Tools of Normative Analysis 1. a. In this particular insurance market, one would not expect asymmetric information to be much of a problem the probability of a flood is common knowledge. Moral
More informationMANAGERIAL ECONOMICS. Economic Tools for Today's Decision Makers. Paul G. Keat. Philip K.Y. Young SIXTH EDITION
SIXTH EDITION MANAGERIAL ECONOMICS Economic Tools for Today's Decision Makers Paul G. Keat Thunderbird School of Global Management Philip K.Y. Young Nth Degree Systems, Inc. and Duke Corporate Education
More information13 MONOPOLISTIC COMPETITION AND OLIGOPOLY. Chapter. Key Concepts
Chapter 13 MONOPOLISTIC COMPETITION AND OLIGOPOLY Key Concepts Monopolistic Competition The market structure of most industries lies between the extremes of perfect competition and monopoly. Monopolistic
More informationSOA/CAS Course 2  Interest Theory, Economics, and Finance
SOA/CAS Course 2  Interest Theory, Economics, and Finance This fourhour multiplechoice examination is administered by Preliminary Actuarial Examinations and is identical to SOA Course 2. Webnotes are
More informationBASIC MARKET ELEMENTS. Supply Demand Price Competition
BASIC MARKET ELEMENTS Supply Demand Price Competition Supply Supply is the quantity of goods that firms are willing to produce and sale with respect to the market price when all other conditions (like
More informationSubsidies in oligopoly markets: a welfare comparison between symmetric and asymmetric costs
Subsidies in oligopoly markets: a welfare comparison between symmetric and asymmetric costs Stephen F. Hamilton and Rickard Sandin Oligopolistic industries generally produce less than is socially desirable.
More information