ECON 201 Study Guide - Final Guide: Utility Maximization Problem, Competitive Equilibrium, Economic Equilibrium
24 Oct 2018
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Simon fraser university, department of economics, econ 301, prof. karaivanov. To get full credit you need to answer all questions. Please put the number of your tutorial section on your exam. Please always explain how you obtained your answers - no credit will be given for correct answers with no explanation. False: whether the consumer can or cannot a(cid:11)ord the bundle is irrelevant. Thus, the (cid:12)rm should instead reduce employment until pm pl = w: the long-run average cost function connects all points at which the short-run average cost functions are minimized. False: the lrac curve is tangent to all the srac curves (lower envelope) but not necessarily at their minima in general. That is, for each level of the (cid:12)xed factor, there is an optimal output level ^y (for which the (cid:12)xed factor e. g. (cid:22)x2 happens to be at its optimal long-run conditional demand, e. g. (cid:22)x2 = xlr.
