Economics 100C: Microeconomics C
econ代写 | 微观代写 | Microeconomics 代写 – 该题目是一个常规的微观经济的的练习题目代写, 是比较典型的经济等代写方向
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Economics 100C: Microeconomics C
Midterm 2
Herb Newhouse
This exam has 4 questions. Including this cover page the exam has 5 pages.
You can use a 8.5 by 5.5 sheet of paper with handwritten notes on both sides, pens and pencils, a calculator and a straight edge. You may not have anything attached to the sheet of paper. All other material should be off your desk. Answer all parts of all questions. Clearly show your work. Full cred IT might not be given for a correct answer with incomplete work.
YOU MAY NOT SIT NEXT TO ANYONE THAT YOU STUDIED WITH!
- (22 pts) A monopolist sells a product in a market with exactly two consumers, a low demand individual and a high demand individual. The monopolist has a constant, long run, marginal cost function with MC = 20. The monopolist can offer menus of two-part tariffs. Each menu consists of a fixed fee, F and a per- unit price, p. As a part of the optimal set of menus, the per-unit price intended for the low demand individual is 40.
a. Determine the optimal set of menus. That is find F 1 , F 2 and p 2. (p 1 was
given above.) Show your work or explain your logic.
b. Suppose that another low demand individual (identical to the original)
enters this market. Determine the direction of change for the optimal set of
menus, F 1 , p 1 , F 2 and p 2. You do not need to do any calculations but you
do need to explain your logic.
q
p
60
40
(^20) MC
PD 1 PD 2
20/3 20 40
- (30 pts) Two firms are competing by simultaneously choosing quantity in a
market. Firm 1 has the long run cost function of Cq 11 4 q 12. Firm 2 has the
long run cost function of Cq 22 5 q 22. Inverse market demand is
123 2
PQD Q where Q = q
1 + q 2.
a. Find the Cournot equilibrium quantity for each firm.
b. Find the Cournot equilibrium price.
c. Suppose firm 2s cost function shifts up. That is, it becomes
Cq 22 5 aq 22
(^) where a > 0. Determine the direction of change for the equilibrium quantity for each firm and the equilibrium price. You do not need to do any calculations but you do need to explain your logic.
- (26 pts) Exactly 5 firms are competing by simultaneously choosing quantity in a
market. Each firm has the long run cost function of Ci(qi) = qi^2. Inverse market
demand is PD(Q) = 120 Q where Q = q 1 + q 2 + q 3 + q 4 + q 5.
a. Find the reaction function for one of these firms.
b. Calculate the Cournot equilibrium quantities and price.
c. Suppose one of the firms exits the market. In what direction will price, the
quantity produced by a single firm and overall market quantity change?
You do not need to do any calculations but explain your logic.
- (22 pts) Each of the graphs below is of the reaction functions for two firms who are competing by simultaneously choosing quantities (Cournot).
a. Illustrate the Cournot equilibrium quantities and sketch each firms iso-
profit curves through this equilibrium.
b. Suppose that firm one chooses its quantity first. Firm 2 observes this
quantity and then chooses its quantity (Stackelberg). Illustrate the
Stackelberg equilibrium quantities and sketch each firms iso-profit curves
through this equilibrium.
c. Suppose that firm twos cost function shifts up. Illustrate how the
equilibrium in part (b) will change. In which direction will each firms
profit change? Give a brief, intuitive explanation.
q 1
r 1
r 2
q 1
r 1
r 2
q 1
r 1
r 2
q 2