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RY
02-03-2006, 12:12 PM
Could anyone help me to solve the q7 in CAS VEE eco 05? Thanks a lot

Besides, could anyone post the ans of the whole exam please?

mlschop
02-03-2006, 01:55 PM
Could anyone help me to solve the q7 in CAS VEE eco 05? Thanks a lot

Besides, could anyone post the ans of the whole exam please?

i agree...maybe Broverman or someone can do some quick solutions for these?

I really hate these VEE...just cuz i'm not getting this econ stuff...i feel i'm gonna fail :-/

sticks1839
02-06-2006, 08:17 AM
Could anyone help me to solve the q7 in CAS VEE eco 05? Thanks a lot

Besides, could anyone post the ans of the whole exam please?

For Q7 this is my thinking...In the long run, firms operate where average cost is minimized and the price of the product will only cover those costs. So divide the total cost by the output to get cost per unit (or average cost) and the firms will operate where that is lowest. So each firm produces 4 at an average cost of 11 per unit. 11 becomes the price in the demand curve given. Solve for Q, but remember that the number of firms X is actually Q/4 since each firm produces 4. A little algebra and you get 115. (B)

ginku
02-07-2006, 09:34 AM
The economic reasoning is correct. You can post any questions you want answered. I could help you with economics.

RY
02-07-2006, 12:38 PM
Thanks for all kindly help!

Now I would like to know how to solve q11-13 in CAS VEE 05, could anyone help me please?

ginku
02-08-2006, 11:13 AM
Thanks for all kindly help!

Now I would like to know how to solve q11-13 in CAS VEE 05, could anyone help me please?

11. p = 30 - v
R = pv = 30v -sqr(v) R -Revenue
MR = 30 - 2v MR-Marginal Revenue
MR = MC = 0 ----> v* = 15 MC-Marginal Cost
----> p = 15.
The answer given on the CAS website is wrong! It can't be D i.e, the monopoly cannot charge 450 since the maximum benefit the consumer can get does not even approach that.

12. Answer. C 6 drivers are optimal. Just multiply the value to the number of drivers to get the total welfare. It is maximized at 36 (6*6). Intutively this is always the case with two such series [crudely: a*b is maximized at a=b subject to the constraint that as a goes up b goes down]

13. Can't remember the formula for Laspeyres Index. It's fairly easy just look it up and apply it.

Hope that helps.
Cheers

mlschop
02-08-2006, 01:56 PM
13. Can't remember the formula for Laspeyres Index. It's fairly easy just look it up and apply it.

I believe Laspeyres Index is the following:

Sum of [ (initial quantities)(current prices) ] /
Sum of [ (initial quantities)(initial prices) ]

I think that's what it is - cuz Lazpeyes uses initial quantities to weight market prices, and Paasche uses current quantities to weight market prices (the way i remember this is Paasche begins with a P, and so does Present, and Present = Current).

I just hope i remembered that all right :-P

titanium2k
02-14-2006, 12:40 AM
For question 12:

We can also compute the Social Marginal Benefit(SMB) first. Then choose SMB equal to zero (from the marginal cost). The number of drivers at SMB = 0is about 6.