Practice Exercises for Intermediate Microeconomic Theory

✍ Scribed by Eric Dunaway, John C. Strandholm, Ana Espinola-Arredondo, Felix Munoz-Garcia

• Publisher: The MIT Press
• Year: 2020
• Tongue: English
• Leaves: 416
• Category: Library

✦ Synopsis

Detailed answer keys to all 140 self-assessment exercises and solutions to the 173 odd-numbered end-of-chapter exercises in Intermediate Microeconomic Theory.

This book accompanies Ana Espinola-Arredondo and Felix Muñoz-Garcia's Intermediate Microeconomic Theory: Tools and Step-by-Step Examples, offering detailed answer keys to all 140 self-assessment exercises and solutions to the 173 odd-numbered end-of-chapter exercises. It provides readable step-by-step explanations and algebra support, enabling students to approach similar exercises on their own, emphasizing the economic intuition behind mathematical results.

✦ Table of Contents

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 CurvesB
Exercise #2.3 - One Way or AnotherB
Exercise #2.5 - Cobb-DouglasA
Exercise #2.7 - Perfect SubstitutesA
Exercise #2.9 - Increasing TransformationsB
Exercise #2.11 - Finding Properties‒IIC
Exercise #2.13 - Finding Properties‒IVB
Exercise #2.15 - Guilty PreferencesB
Exercise #2.17 - Protein PreferencesA
Exercise #2.19 - Eating PizzaA
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 LineA
Exercise #3.3 - Composite GoodA
Exercise #3.5 - Expenditure FunctionA
Exercise #3.7 - Cobb-Douglas‒IA
Exercise #3.9 - Cobb-Douglas‒IIIC
Exercise #3.11 - Different RelationshipsC
Exercise #3.13 - Perfect Complements‒IA
Exercise #3.15 - Expenditure Minimization ProblemA
Exercise #3.17 - Perfect Complements‒IIB
Exercise #3.19 - Utility MaximizationB
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‒IA
Exercise #4.3 - Quasilinear Utility‒IB
Exercise #4.5 - Decomposition BundlesB
Exercise #4.7 - Income EffectsA
Exercise #4.9 - Linear DemandA
Exercise #4.11 - Income Elasticity‒IB
Exercise #4.13 - Perfect ComplementsB
Exercise #4.15 - Deriving Functions‒IIA
Exercise #4.17 - Income Elasticity‒IIA
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 CSA
Exercise #5.3 - CS and Changing PricesA
Exercise #5.5 - CS and Nonlinear Demand‒IA
Exercise #5.7 - Calculating CVB
Exercise #5.9 - CV with Cobb-Douglas Utility FunctionB
Exercise #5.11 - CV with General Price ChangeC
Exercise #5.13 - EV with Cobb-Douglas Demand‒IIB
Exercise #5.15 - EV with Different IncomeA
Exercise #5.17 - CS, CV, and EV with No Income Effects‒IB
Exercise #5.19 - Alternative Representation of CVB
Exercise #5.21 - Alternative Representation of EVB
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 UtilityA
Exercise #6.3 - EV and Variance‒IIB
Exercise #6.5 - Expected Utility‒IIA
Exercise #6.7 - Risk AversionB
Exercise #6.9 - Risk LovingB
Exercise #6.11 - Risk NeutralityB
Exercise #6.13 - Contracting an IllnessB
Exercise #6.15 - Not Purchasing Full InsuranceB
Exercise #6.17 - Arrow-Pratt Coefficient‒IIB
Exercise #6.19 - Prospect Theory‒IB
Exercise #6.21 - GamblingA
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 FunctionsB
Exercise #7.3 - Where the MP and AP Curves CrossA
Exercise #7.5 - MP and Changing CapitalB
Exercise #7.7 - Linear Production and MRTSA
Exercise #7.9 - Returns to Scale‒IA
Exercise #7.11 - Decreasing Marginal ReturnsA
Exercise #7.13 - Choosing ProductionA
Exercise #7.15 - CES Production Function and Marginal ProductsB
Exercise #7.17 - Choosing Factors of ProductionB
Exercise #7.19 - Comparing MRTSC
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-DouglasB
Exercise #8.3 - Properties of a Cost FunctionB
Exercise #8.5 - CMP for Cobb-Douglas Production‒IC
Exercise #8.7 - Explicit and Implicit CostsA
Exercise #8.9 - CMP with Cobb-Douglas Production‒IIB
Exercise #8.11 - Cobb-Douglas Production and Input DemandB
Exercise #8.13 - Short-Run Cobb-Douglas CostsB
Exercise #8.15 - Substitutes in ProductionB
Exercise #8.17 - Economies of Scale‒IA
Exercise #8.19 - Economies of ScopeA
Exercise #8.21 - Experience Elasticity‒IIA
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 MarketsA
Exercise #9.3 - Long-Run Equilibrium and SubsidiesB
Exercise #9.5 - Perfectly Competitive Equilibrium‒IIA
Exercise #9.7 - Shutdown Price and Short-Run SupplyA
Exercise #9.9 - Finding Aggregate Supply and EquilibriumA
Exercise #9.11 - Calculating Producer SurplusA
Exercise #9.13 - Profit versus Producer SurplusB
Exercise #9.15 - General Equilibrium.IB
Exercise #9.17 - Effciency in General EquilibriumB
Exercise #9.19 - Second Welfare TheoremC
Exercise #9.21 - First Welfare Theorem with External EffectsC
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 CostsB
Exercise #10.3 - Maximizing Revenue versus ProfitA
Exercise #10.5 - Regulating a Natural MonopolyB
Exercise #10.7 - Two Parts of Marginal RevenueA
Exercise #10.9 - Factors of a High Monopoly PriceB
Exercise #10.11 - Monopoly with General Linear DemandC
Exercise #10.13 - Multiplant Monopoly‒IB
Exercise #10.15 - Multiproduct MonopolyC
Exercise #10.17 - Advertising-to-Sales RatioA
Exercise #10.19 - Identify a MonopsonyA
Exercise #10.21 - Monopsony‒Two InputsB
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 DemandsB
Exercise #11.3 - Implementing Price DiscriminationA
Exercise #11.5 - When to Price DiscriminateB
Exercise #11.7 - Willingness to Price DiscriminateB
Exercise #11.9 - Deciding When to Withdraw from a MarketB
Exercise #11.11 - Second-Degree Price DiscriminationA
Exercise #11.13 - Second-Degree Price Discrimination with Three BlocksC
Exercise #11.15 - Bundling PricesA
Exercise #11.17 - Bundling‒IIB
Exercise #11.19 - Bundling‒IIIB
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 DominanceA
Exercise #12.3 - Strict Dominance ‒ Some BiteB
Exercise #12.5 - Prisoner's DilemmaB
Exercise #12.7 - Weak DominanceA
Exercise #12.9 - Weak Dominance‒IIIB
Exercise #12.11 - Nash Equilibrium in a 3x3 MatrixB
Exercise #12.13 - Nash Equilibrium in the Split‒Steal GameB
Exercise #12.15 - Rock, Paper, Scissors‒IA
Exercise #12.17 - Charitable ContributionsB
Exercise #12.19 - Finding msNE‒Coordination GameB
Exercise #12.21 - Penalty KicksA
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‒IA
Exercise #13.3 - Backward Induction‒IIIB
Exercise #13.5 - Backward Induction‒VB
Exercise #13.7 - Battle of the Sexes GameA
Exercise #13.9 - Anticoordination GameA
Exercise #13.11 - Complementary PricingB
Exercise #13.13 - Centipede GameC
Exercise #13.15 - Repeated DilemmasB
Exercise #13.17 - Alternative TriggersB
Exercise #13.19 - Temporary PunishmentsC
Exercise #13.21 - Punishment SizeB
Exercise #13.23 - Rock, Paper, Scissors‒IIB
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 IndexA
Exercise #14.3 - Properties of the Best Response FunctionB
Exercise #14.5 - Symmetric CournotA
Exercise #14.7 - Cournot with Asymmetric Fixed CostsB
Exercise #14.9 - Cournot with Three FirmsC
Exercise #14.11 - Finitely Repeated Grim-Trigger StrategyB
Exercise #14.13 - Collusion with Delayed DetectionB
Exercise #14.15 - Colluding BarbecueB
Exercise #14.17 - Properties of the Stackelberg EquilibriumA
Exercise #14.19 - Cournot versus StackelbergB
Exercise #14.21 - Product DifferentiationA
Exercise #14.23 - Stackelberg Prices with Homogeneous GoodsA
Exercise #14.25 - Reconciling Bertrand and Cournot through CapacityC
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‒IA
Exercise #15.3 - Stackelberg Leader Facing Uncertain CostsA
Exercise #15.5 - Uncertain Demand‒One Uninformed FirmB
Exercise #15.7 - Entry DeterrenceB
Exercise #15.9 - First-Price Auction‒IIA
Exercise #15.11 - Risk Aversion‒IB
Exercise #15.13 - Second-Price Auction‒IA
Exercise #15.15 - Lottery Allocation‒IB
Exercise #15.17 - All-Pay AuctionC
Exercise #15.19 - Effciency with Risk AversionB
Exercise #15.21 - Comparing AuctionsA
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 HazardA
Exercise #16.3 - Risk Aversion‒IIA
Exercise #16.5 - Household Chores‒IB
Exercise #16.7 - Basketball‒IA
Exercise #16.9 - Insurance Market‒IB
Exercise #16.11 - Risk-Averse Lemons‒IB
Exercise #16.13 - Risk-Averse Lemons‒IIB
Exercise #16.15 - Risk Neutrality‒IIB
Exercise #16.17 - Risk Neutrality‒IIB
Exercise #16.19 - TrainingA
Exercise #16.21 - Adverse SelectionA
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 DuopolyB
Exercise #17.3 - Positive Externalities and Social OptimumA
Exercise #17.5 - Optimal Emission FeeB
Exercise #17.7 - Public Goods and Free-RidingB
Exercise #17.9 - Common-Pool Resource‒IB
Exercise #17.11 - Common-Pool Resource‒IIIB
Exercise #17.13 - When Does the Coase Theorem Apply?A
Exercise #17.15 - Coase Theorem in ActionA
Exercise #17.17 - Multiple PollutersB
Exercise #17.19 - Common-Pool RefrigeratorA