| Week |
Questions and Problems
from Allen's "Seven Ideas for Thinking..." 8th
edition, |
| 1 |
Chapter 3: review
questions 1, 5, 6; problems 6, 4. Chapter 2: review question 3; problem 7. |
| 2 |
Chapter 4: problems 11 and 8 Problem: Olivia's monthly demand for badminton is P = 15 - 0.5Q, where P is price per one hour of play time and Q is the number of hours she plays per month. There are two badminton clubs in the city she lives in. Space Courts club charges drop-in rate of $6 per hour without any additional fees. Tiger Racquets club asks for a $50 monthly membership fee on top of which it will charge $3 per hour to play. Which club should Olivia choose? If time left do review questions 3-4 and problem 1. |
| 3 |
Chapter 5:
problems 4, 6, 23, 3, 13 and 2. |
| 4 |
Chapter 6: problems 1, 5, 6, 10;
if time left 13, 21, 11. |
| 5 |
Chapter 7: problems 6, 10, 18, 29, 3. |
| 6 |
Question 1: When John hired 20 workers (L=20) for his bakery shop, they produced 200 cinnamon buns (Q=200). When John hired 5 more workers the output became Q=220; notice that at this point L=20+5=25. (a) at L=20, how much output does each worker produce on average (AP)? (b) how many units of output did the 5 additional workers contribute to the bakery's output together? Calculate how much each of the new workers contributed to the production (MP). (c) what is the average product of labor at L=25? (d) if you calculated everything correctly you should see that after hiring the new 5 workers the average product decreased. Discuss why that happened. (e) Based on your calculation in which stage of the typical production process is John's bakery operating? Chapter 8: problems 15 (show on diagrams), 18, 12. If time left 4 and 17. |
| 7 |
Chapter 9:
problems 1, 26 (demonstrate on a diagram), 3, 6, 25, 32. |
| 8 |
Chapter 9: do problem 12: (discuss
how the tax affects the market and the firms both in the
short-run and the long-run). On two diagrams, one with typical cost curves and the other with market demand, long-run and short-run supply demonstrate a situation when a perfectly competitive industry with identical firms is initially in both short-run and long-run equilibrium. Discuss the impact of an increase in wage. For simplicity assume the fixed cost is zero, so ATC=AVC and after the wage increase the ATC is minimized at the same level of output (if there are fixed costs the min of ATC will occur at a different output level, which complicates the diagram) (a) Draw the appropriate shifts in the cost curves. Show how the market is affected in the short-run: discuss impact on the market price, quantity, each firm's output, and firms' profits. (b) Discuss how the market and the firms are affected in the long-run. If time left also problem 19. |
| 9 |
Catch up before the midterm.
|
| 10 |
Chapter 10: problems 2, 21, 25
(demonstrate on a diagram, discuss who bears the tax burden
and why), 16, 13, 7. |
| 11 |
Midterm review. Chapter
13 problems 1, 10 (show on a diagram), 6.
If time left discuss the following: a) Why in competitive market equilibrium is efficient and in monopolistic market equilibrium is inefficient. b) For a monopoly does profit maximization imply revenue maximization? |
| 12 | Chapter 13: problems 12, 30. 23,
18. |