ChE 331: Physical Chemistry Study Guide
EconS 301 – Intermediate Microeconomics
Study Guide for Midterm #2
Material: Chapters 7-9 and 11-13 from Besanko and Braeutigam, and the reading from Perloff posted on the course website (Taxing a monopolist.pdf).
•
This study guide provides a short summary of the main topics we have been discussing in class.
You should be confident in all of them before the exam, and know how to apply them to specific exercises. •
You can find additional practice in the handouts posted for the weekly Review Sessions (they contain the answers of all exercises) and in the Practice multiple choice exercises of every chapter. All of these documents are posted on the course website.
•
Additional practice exercises from your textbook:
•
o
Chapter 7: 7.8, 7.9 and 7.22.
o
Chapter 8: 8.15 and 8.18.
o
Chapter 9: 9.8, 9.13, 9.23 and 9.32.
o
Chapter 11: 11.10, 11.15 and 11.19.
o
Chapter 12: 12.7, 12.11, 12.23, 12.24.
o
Chapter 13: 13.4, 13.12, 13.23, 13.28.
If you want to go over some of these exercises, please have a look at the handout “Review
Session for Midterm #2” posted on the course website (Review sessions section).
CHAPTER 7
1. Definition of costs: explicit, implicit, opportunity cost, sunk/nonsunk, long run, short run.
2. Isocost line.
a. How to represent it algebraically.
b. How to represent it graphically? Solve for K.
c. Vertical and horizontal intercept. Slope is the input price ratio.
3. Cost-minimizing bundle: combination of labor and capital that minimizes the firm’s total cost.
a. Tangency condition between the firm’s isoquant and isocost.
b. A given production level (generally Qbar) must be met.
c. Examples from class, both in the case of interior solutions and in the case of corner solutions. 4. Comparative statics of:
a. Increasing the price of one input. For example, increasing the price of labor. First, it rotates the isocost line inwards, and then the firm is forced to incur higher costs
Study Guide for Midterm #2
Material: Chapters 7-9 and 11-13 from Besanko and Braeutigam, and the reading from Perloff posted on the course website (Taxing a monopolist.pdf).
•
This study guide provides a short summary of the main topics we have been discussing in class.
You should be confident in all of them before the exam, and know how to apply them to specific exercises. •
You can find additional practice in the handouts posted for the weekly Review Sessions (they contain the answers of all exercises) and in the Practice multiple choice exercises of every chapter. All of these documents are posted on the course website.
•
Additional practice exercises from your textbook:
•
o
Chapter 7: 7.8, 7.9 and 7.22.
o
Chapter 8: 8.15 and 8.18.
o
Chapter 9: 9.8, 9.13, 9.23 and 9.32.
o
Chapter 11: 11.10, 11.15 and 11.19.
o
Chapter 12: 12.7, 12.11, 12.23, 12.24.
o
Chapter 13: 13.4, 13.12, 13.23, 13.28.
If you want to go over some of these exercises, please have a look at the handout “Review
Session for Midterm #2” posted on the course website (Review sessions section).
CHAPTER 7
1. Definition of costs: explicit, implicit, opportunity cost, sunk/nonsunk, long run, short run.
2. Isocost line.
a. How to represent it algebraically.
b. How to represent it graphically? Solve for K.
c. Vertical and horizontal intercept. Slope is the input price ratio.
3. Cost-minimizing bundle: combination of labor and capital that minimizes the firm’s total cost.
a. Tangency condition between the firm’s isoquant and isocost.
b. A given production level (generally Qbar) must be met.
c. Examples from class, both in the case of interior solutions and in the case of corner solutions. 4. Comparative statics of:
a. Increasing the price of one input. For example, increasing the price of labor. First, it rotates the isocost line inwards, and then the firm is forced to incur higher costs