ECON Worksheet, Microeconomics


Deadline is 20 Hours...


1. A. Explain how one derives the indifference curves from a 3-dimensional utility function. Draw a graph and explain. Which principle explains the concave shape of the utility function? Why?

B. Explain the concept of Consumer Equilibrium. How does it relate to utility maximization? Draw a graph and show where consumer equilibrium occurs. Write down the equation that holds at the consumer equilibrium.

C. Explain how one can drive the Law of Demand from Consumer equilibrium.

D. Assume that there are 2 goods, X and Y and P(X) = $20 and MU(X) = 100, and p(Y) = $50. Assuming that the consumer is currently maximizing her utility, compute MU(Y). SHOW THE EQUATION YOU USE AND SHOW YOUR COMPUTATION.

2. A. Define and explain Short Run cost curves (TOTAL, AVERAGE AND MARGINAL COST CURVES). DRAW GRAPHS AND LABEL EACH CURVE ON THE GRAPH. Explain the “law of diminishing returns”. State the economic reason behind it.

B. Explain the Long Run Average Total Cost curve. Explain the concepts of Economies of Scale; Constant Returns to scale; Diseconomies of scale. Draw a graph.

3. A. Write down the 4 major characteristics of Perfectly Competitive markets.

B. Draw 3 GRAPHS AND EXPLAIN THE 3 POSSIBLE SITUATIONS THAT A COMPETITIVE FIRM CAN FACE IN THE SHORT-RUN.

C. Explain the LR equilibrium in a perfectly competitive market. Draw a graph.
Posted Date: 11/12/2012 8:07:10 PM | Location : United States







Related Discussions:- ECON Worksheet, Assignment Help, Ask Question on ECON Worksheet, Get Answer, Expert's Help, ECON Worksheet Discussions

Write discussion on ECON Worksheet
Your posts are moderated
Related Questions
1. Suppose that a monopolistically competitive firm must build a production facility in order to produce a product.  The fixed cost of this facility is FC = $24.  Also, the firm ha

Demand Function is Homogeneous of Degree Zero: Mathematical Presentation  we will show that demand function is homogeneous of degree zero in prices and money income. In o


How would you construct an estimate of marginal cost, & ?C(w, y) , in each period? ?Y

A monopolist faces the following demand function for its product: Q = 45 - 5P The fixed costs of the monopolist are $12 and the variable costs are $5 per unit. a) What are the


What is meant by the multifaceted nature of the U.S. health care system? How is health care financed in the U.S.? What is the advantage and disadvantage of the U.S. multi-payer sys

Withdrawing MRTP Restrictions: The restriction on the scrutiny of an investment proposal that it does not violate the provisions of MRTP Act was withdrawn. This freed big bus

-1- ASSIGNMENT #1 The demand function for Product X is given by: Qdx = 80- 2Px- 0.05P²x -0.2Py + 4Pz + 0.01I+ 2A Where: Px Price of good X $120.00 Py Price of related good y $100.0

Impact of government legislations on business in india Government in India plays a dominant role in the Indian business activity. It directs and regulates the private business and