Past Exam for ECON 306 - INTERMED MICROECON THRY at Maryland (UMD)

Exam Information

Material Type:Exam 3
University:University of Maryland
Term:Fall 1991
  • Marginal Rate
  • Assumptions
  • Provided That
  • Isocost Line
  • Average Variable Cost
  • Substitution
  • Following Terms
  • Minimization
  • Exam Booklet
  • Competitive Market
Login / Sign Up to View Document
Preview Page 1Preview Page 2Preview Page 3

Sample Document Text

EXAM 3 INTERMEDIATE MICROECO'OMIC THEORY ~16<' Fall 1991 November 21, 1991 Mr. Meredith Please answer ~!ll questions in the exam booklet provided. PART 1 1. Define and state the importance of the following terms: a) Technical rate of substitution b) Condition.ll factor demand functions c) Producer siurplus d) Production set e) Homogem!ity PART 2 Please answer the following questions. 2. A firm uses labor and capital to produce output according to the production function f(K,L)=3K l12 L l12 , where K is the number of units of capital and L is the number cf units of labor. The cost of labor is P L and the cost of capital is P K . a) write both the profit maximization relation and the cost minimization relation. i.e., what is the equation you would optimize in each situation? b) what is thf~ slope of the isocost line? c) using cost minimization, find the optimal values of K and L that you would use to produce y units of output. d) derive the cost function an...

Related Documents

Profit Maximization Notes
Bruce Springsteen Exam
Linear Demand Curve Exam
Indifference Curves Exam
Average Fixed Costs Exam
Individual Income Tax Notes
Shutdown Point Exam
Current Gains Exam
Natural Monopoly Exam
Marginal Cost Curve Exam
Market Position Notes
Provided That Quiz
Onion Rings Exam
Perfect Compliments Exam
Rational Person Exam
Own Price Elasticity Exam
155, "/var/app/current/tmp/"