Practice Exercises for Intermediate Microeconomic Theory

Table of contents :
Title Page
Copyright
Contents
Preface
Chapter 2 - Consumer Preferences and Utility
2.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #2.1
Self-assessment exercise #2.2
Self-assessment exercise #2.3
Self-assessment exercise #2.4
Self-assessment exercise #2.5
Self-assessment exercise #2.6
Self-assessment exercise #2.7
Self-assessment exercise #2.8
Self-assessment exercise #2.9
Self-assessment exercise #2.10
Self-assessment exercise #2.11
Self-assessment exercise #2.12
Self-assessment exercise #2.13
Self-assessment exercise #2.14
Self-assessment exercise #2.15
2.2 Solutions to End-of-Chapter Exercises
Exercise #2.1 - Indifference Curves B
Exercise #2.3 - One Way or Another B
Exercise #2.5 - Cobb-Douglas A
Exercise #2.7 - Perfect Substitutes A
Exercise #2.9 - Increasing Transformations B
Exercise #2.11 - Finding Properties–II C
Exercise #2.13 - Finding Properties–IV B
Exercise #2.15 - Guilty Preferences B
Exercise #2.17 - Protein Preferences A
Exercise #2.19 - Eating Pizza A
Chapter 3 - Consumer Choice
3.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #3.1
Self-assessment exercise #3.2
Self-assessment exercise #3.3
Self-assessment exercise #3.4
Self-assessment exercise #3.5
Self-assessment exercise #3.6
Self-assessment exercise #3.7
Self-assessment exercise #3.8
Self-assessment exercise #3.9
Self-assessment exercise #3.10
3.2 Solutions to End-of-Chapter Exercises
Exercise #3.1 - Budget Line A
Exercise #3.3 - Composite Good A
Exercise #3.5 - Expenditure Function A
Exercise #3.7 - Cobb-Douglas–I A
Exercise #3.9 - Cobb-Douglas–III C
Exercise #3.11 - Different Relationships C
Exercise #3.13 - Perfect Complements–I A
Exercise #3.15 - Expenditure Minimization Problem A
Exercise #3.17 - Perfect Complements–II B
Exercise #3.19 - Utility Maximization B
Chapter 4 - Substitution and Income Effects
4.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #4.1
Self-assessment exercise #4.2
Self-assessment exercise #4.3
Self-assessment exercise #4.4
Self-assessment exercise #4.5
Self-assessment exercise #4.6
Self-assessment exercise #4.7
Self-assessment exercise #4.8
Self-assessment exercise #4.9
4.2 Solutions to End-of-Chapter Exercises
Exercise #4.1 - Deriving Functions–I A
Exercise #4.3 - Quasilinear Utility–I B
Exercise #4.5 - Decomposition Bundles B
Exercise #4.7 - Income Effects A
Exercise #4.9 - Linear Demand A
Exercise #4.11 - Income Elasticity–I B
Exercise #4.13 - Perfect Complements B
Exercise #4.15 - Deriving Functions–II A
Exercise #4.17 - Income Elasticity–II A
Exercise #4.19 - Giffen Good? B
Chapter 5 - Measuring Welfare Changes
5.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #5.1
Self-assessment exercise #5.2
Self-assessment exercise #5.3
Self-assessment exercise #5.4
Self-assessment exercise #5.5
Self-assessment exercise #5.6
Self-assessment exercise #5.7
5.2 Solutions to End-of-Chapter Exercises
Exercise #5.1 - Changes in CS A
Exercise #5.3 - CS and Changing Prices A
Exercise #5.5 - CS and Nonlinear Demand–I A
Exercise #5.7 - Calculating CV B
Exercise #5.9 - CV with Cobb-Douglas Utility Function B
Exercise #5.11 - CV with General Price Change C
Exercise #5.13 - EV with Cobb-Douglas Demand–II B
Exercise #5.15 - EV with Different Income A
Exercise #5.17 - CS, CV, and EV with No Income Effects–I B
Exercise #5.19 - Alternative Representation of CV B
Exercise #5.21 - Alternative Representation of EV B
Chapter 6 - Choice under Uncertainty
6.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #6.1
Self-assessment exercise #6.2
Self-assessment exercise #6.3
Self-assessment exercise #6.4
Self-assessment exercise #6.5
Self-assessment exercise #6.6
Self-assessment exercise #6.7
Self-assessment exercise #6.8
6.2 Solutions to End-of-Chapter Exercises
Exercise #6.1 - Expected Utility A
Exercise #6.3 - EV and Variance–II B
Exercise #6.5 - Expected Utility–II A
Exercise #6.7 - Risk Aversion B
Exercise #6.9 - Risk Loving B
Exercise #6.11 - Risk Neutrality B
Exercise #6.13 - Contracting an Illness B
Exercise #6.15 - Not Purchasing Full Insurance B
Exercise #6.17 - Arrow-Pratt Coefficient–II B
Exercise #6.19 - Prospect Theory–I B
Exercise #6.21 - Gambling A
Chapter 7 - Production Functions
7.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #7.1
Self-assessment exercise #7.2
Self-assessment exercise #7.3
Self-assessment exercise #7.4
Self-assessment exercise #7.5
Self-assessment exercise #7.6
Self-assessment exercise #7.7
Self-assessment exercise #7.8
Self-assessment exercise #7.9
Self-assessment exercise #7.10
Self-assessment exercise #7.11
Self-assessment exercise #7.12
Self-assessment exercise #7.13
7.2 Solutions to End-of-Chapter Exercises
Exercise #7.1 - Properties of Production Functions B
Exercise #7.3 - Where the MP and AP Curves Cross A
Exercise #7.5 - MP and Changing Capital B
Exercise #7.7 - Linear Production and MRTS A
Exercise #7.9 - Returns to Scale–I A
Exercise #7.11 - Decreasing Marginal Returns A
Exercise #7.13 - Choosing Production A
Exercise #7.15 - CES Production Function and Marginal Products B
Exercise #7.17 - Choosing Factors of Production B
Exercise #7.19 - Comparing MRTS C
Chapter 8 - Cost Minimization
8.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #8.1
Self-assessment exercise #8.2
Self-assessment exercise #8.3
Self-assessment exercise #8.4
Self-assessment exercise #8.5
Self-assessment exercise #8.6
Self-assessment exercise #8.7
Self-assessment exercise #8.8
Self-assessment exercise #8.9
Self-assessment exercise #8.10
Self-assessment exercise #8.11
Self-assessment exercise #8.12
Self-assessment exercise #8.13
8.2 Solutions to End-of-Chapter Exercises
Exercise #8.1 - Cost Minimization for Cobb-Douglas B
Exercise #8.3 - Properties of a Cost Function B
Exercise #8.5 - CMP for Cobb-Douglas Production–I C
Exercise #8.7 - Explicit and Implicit Costs A
Exercise #8.9 - CMP with Cobb-Douglas Production–II B
Exercise #8.11 - Cobb-Douglas Production and Input Demand B
Exercise #8.13 - Short-Run Cobb-Douglas Costs B
Exercise #8.15 - Substitutes in Production B
Exercise #8.17 - Economies of Scale–I A
Exercise #8.19 - Economies of Scope A
Exercise #8.21 - Experience Elasticity–II A
Chapter 9 - Partial and General Equilibrium
9.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #9.1
Self-assessment exercise #9.2
Self-assessment exercise #9.3
Self-assessment exercise #9.4
Self-assessment exercise #9.5
Self-assessment exercise #9.6
Self-assessment exercise #9.7
Self-assessment exercise #9.8
Self-assessment exercise #9.9
Self-assessment exercise #9.10
9.2 Solutions to End-of-Chapter Exercises
Exercise #9.1 - Identifying Perfectly Competitive Markets A
Exercise #9.3 - Long-Run Equilibrium and Subsidies B
Exercise #9.5 - Perfectly Competitive Equilibrium–II A
Exercise #9.7 - Shutdown Price and Short-Run Supply A
Exercise #9.9 - Finding Aggregate Supply and Equilibrium A
Exercise #9.11 - Calculating Producer Surplus A
Exercise #9.13 - Pro.t versus Producer Surplus B
Exercise #9.15 - General Equilibrium–I B
Exercise #9.17 - Efficiency in General Equilibrium B
Exercise #9.19 - Second Welfare Theorem C
Exercise #9.21 - First Welfare Theorem with External Effects C
Chapter 10 - Monopoly
10.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #10.1
Self-assessment exercise #10.2
Self-assessment exercise #10.3
Self-assessment exercise #10.4
Self-assessment exercise #10.5
Self-assessment exercise #10.6
Self-assessment exercise #10.7
Self-assessment exercise #10.8
Self-assessment exercise #10.9
Self-assessment exercise #10.10
10.2 Solutions to End-of-Chapter Exercises
Exercise #10.1 - Monopoly Equilibrium-Linear Costs B
Exercise #10.3 - Maximizing Revenue versus Profit A
Exercise #10.5 - Regulating a Natural Monopoly B
Exercise #10.7 - Two Parts of Marginal Revenue A
Exercise #10.9 - Factors of a High Monopoly Price B
Exercise #10.11 - Monopoly with General Linear Demand C
Exercise #10.13 - Multiplant Monopoly–I B
Exercise #10.15 - Multiproduct Monopoly C
Exercise #10.17 - Advertising-to-Sales Ratio A
Exercise #10.19 - Identify a Monopsony A
Exercise #10.21 - Monopsony–Two Inputs B
Chapter 11 - Price Discrimination and Bundling
11.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #11.1
Self-assessment exercise #11.2
Self-assessment exercise #11.3
Self-assessment exercise #11.4
11.2 Solutions to End-of-Chapter Exercises
Exercise #11.1 - Price Discrimination with Different Demands B
Exercise #11.3 - Implementing Price Discrimination A
Exercise #11.5 - When to Price Discriminate B
Exercise #11.7 - Willingness to Price Discriminate B
Exercise #11.9 - Deciding When to Withdraw from a Market B
Exercise #11.11 - Second-Degree Price Discrimination A
Exercise #11.13 - Second-Degree Price Discrimination with Three Blocks C
Exercise #11.15 - Bundling Prices A
Exercise #11.17 - Bundling-II B
Exercise #11.19 - Bundling-III B
Chapter 12 - Simultaneous-Move Games
12.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #12.1
Self-assessment exercise #12.2
Self-assessment exercise #12.3
Self-assessment exercise #12.4
Self-assessment exercise #12.5
Self-assessment exercise #12.6
Self-assessment exercise #12.7
Self-assessment exercise #12.8
Self-assessment exercise #12.9
Self-assessment exercise #12.10
12.2 Solutions to End-of-Chapter Exercises
Exercise #12.1 - Strict Dominance A
Exercise #12.3 - Strict Dominance – Some Bite B
Exercise #12.5 - Prisoner’s Dilemma B
Exercise #12.7 - Weak Dominance A
Exercise #12.9 - Weak Dominance–III B
Exercise #12.11 - Nash Equilibrium in a 3x3 Matrix B
Exercise #12.13 - Nash Equilibrium in the Split–Steal Game B
Exercise #12.15 - Rock, Paper, Scissors–I A
Exercise #12.17 - Charitable Contributions B
Exercise #12.19 - Finding msNE–Coordination Game B
Exercise #12.21 - Penalty Kicks A
Chapter 13 - Sequential and Repeated Games
13.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #13.1
Self-assessment exercise #13.2
Self-assessment exercise #13.3
Self-assessment exercise #13.4
13.2 Solutions to End-of-Chapter Exercises
Exercise #13.1 - Backward Induction–I A
Exercise #13.3 - Backward Induction–III B
Exercise #13.5 - Backward Induction–V B
Exercise #13.7 - Battle of the Sexes Game A
Exercise #13.9 - Anticoordination Game A
Exercise #13.11 - Complementary Pricing B
Exercise #13.13 - Centipede Game C
Exercise #13.15 - Repeated Dilemmas B
Exercise #13.17 - Alternative Triggers B
Exercise #13.19 - Temporary Punishments C
Exercise #13.21 - Punishment Size B
Exercise #13.23 - Rock, Paper, Scissors–II B
Chapter 14 - Imperfect Competition
14.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #14.1
Self-assessment exercise #14.2
Self-assessment exercise #14.3
Self-assessment exercise #14.4
Self-assessment exercise #14.5
Self-assessment exercise #14.6
Self-assessment exercise #14.7
Self-assessment exercise #14.8
Self-assessment exercise #14.9
14.2 Solutions to End-of-Chapter Exercises
Exercise #14.1 - Her.ndahl-Hirschman Index A
Exercise #14.3 - Properties of the Best Response Function B
Exercise #14.5 - Symmetric Cournot A
Exercise #14.7 - Cournot with Asymmetric Fixed Costs B
Exercise #14.9 - Cournot with Three Firms C
Exercise #14.11 - Finitely Repeated Grim-Trigger Strategy B
Exercise #14.13 - Collusion with Delayed Detection B
Exercise #14.15 - Colluding Barbecue B
Exercise #14.17 - Properties of the Stackelberg Equilibrium A
Exercise #14.19 - Cournot versus Stackelberg B
Exercise #14.21 - Product Differentiation A
Exercise #14.23 - Stackelberg Prices with Homogeneous Goods A
Exercise #14.25 - Reconciling Bertrand and Cournot through Capacity C
Chapter 15 - Games of Incomplete Information and Auctions
15.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #15.1
Self-assessment exercise #15.2
Self-assessment exercise #15.3
Self-assessment exercise #15.4
Self-assessment exercise #15.5
15.2 Solutions to End-of-Chapter Exercises
Exercise #15.1 - Pareto Uncertainty–I A
Exercise #15.3 - Stackelberg Leader Facing Uncertain Costs A
Exercise #15.5 - Uncertain Demand.One Uninformed Firm B
Exercise #15.7 - Entry Deterrence B
Exercise #15.9 - First-Price Auction–II A
Exercise #15.11 - Risk Aversion–I B
Exercise #15.13 - Second-Price Auction–I A
Exercise #15.15 - Lottery Allocation–I B
Exercise #15.17 - All-Pay Auction C
Exercise #15.19 - Efficiency with Risk Aversion B
Exercise #15.21 - Comparing Auctions A
Chapter 16 - Contract Theory
16.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #16.1
Self-assessment exercise #16.2
Self-assessment exercise #16.3
Self-assessment exercise #16.4
Self-assessment exercise #16.5
Self-assessment exercise #16.6
16.2 Solutions to End-of-Chapter Exercises
Exercise #16.1 - Moral Hazard A
Exercise #16.3 - Risk Aversion–II A
Exercise #16.5 - Household Chores–I B
Exercise #16.7 - Basketball–I A
Exercise #16.9 - Insurance Market–I B
Exercise #16.11 - Risk-Averse Lemons–I B
Exercise #16.13 - Risk-Averse Lemons–II B
Exercise #16.15 - Risk Neutrality–II B
Exercise #16.17 - Risk Neutrality–II B
Exercise #16.19 - Training A
Exercise #16.21 - Adverse Selection A
Chapter 17 - Externalities and Public Goods
17.1 Solutions to Self-Assessment Exercises
Self-assessment exercise #17.1
Self-assessment exercise #17.2
Self-assessment exercise #17.3
Self-assessment exercise #17.4
Self-assessment exercise #17.5
Self-assessment exercise #17.6
Self-assessment exercise #17.7
17.2 Solutions to End-of-Chapter Exercises
Exercise #17.1 - Regulated Duopoly B
Exercise #17.3 - Positive Externalities and Social Optimum A
Exercise #17.5 - Optimal Emission Fee B
Exercise #17.7 - Public Goods and Free-Riding B
Exercise #17.9 - Common-Pool Resource–I B
Exercise #17.11 - Common-Pool Resource–III B
Exercise #17.13 - When Does the Coase Theorem Apply? A
Exercise #17.15 - Coase Theorem in Action A
Exercise #17.17 - Multiple Polluters B
Exercise #17.19 - Common-Pool Refrigerator A