Actuarial Outpost the exam
 Register Blogs Wiki FAQ Calendar Search Today's Posts Mark Forums Read
 FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

 Fill in a brief DW Simpson Registration Form to be contacted when our jobs meet your criteria.

#31
11-08-2001, 01:11 PM
 Djb116 Member Join Date: Nov 2001 Location: Philadelphia Posts: 33

I got the same thing for question 50: 60/600 = 10%

For the labor and capital question, I used the relationship between marginal utility and prices: MU(x)/P(x) = MU(y)/P(y) and I think MU(x)=10, P(x)=20, and MU(y)=5, so I got P(y)=10.
Don't know if that's the right methodology or not.
#32
11-08-2001, 02:47 PM
 Anonymous Guest Posts: n/a

F*** me man! I divided by the MV, s/b be avg. BV now that I thought about it.
#33
11-08-2001, 04:25 PM
 mopete Member Join Date: Sep 2001 Posts: 93

djb--that's right on. In fact, I did it the old max/min way and came up with the same thing.

L=100, K=200 units, MUL = 5, MUK = 10

Productivity = 100*L + 200*K = 4500

held constant (stated in question)

so Total Cost = wL*L + wK*(4500-100L)/200

so TC = wL*L + 450 - 10L

of course minimizing cost ==> derivative w/respect to L, set to zero AND...

wL = 10.

Of course, if I knew more econ and less math, I could have done it in two lines like you!
#34
11-08-2001, 04:56 PM
 Djb116 Member Join Date: Nov 2001 Location: Philadelphia Posts: 33

If you guys get a chance, can everyone post their answers at http://www.rogerlee.com/mc. It only takes two minutes.
#35
11-08-2001, 05:00 PM
 Anonymous Guest Posts: n/a

u added an extra . to the URL. the URL is http://rogerlee.com/mc
#36
11-08-2001, 05:05 PM
 Djb116 Member Join Date: Nov 2001 Location: Philadelphia Posts: 33

#37
11-09-2001, 12:03 PM
 GuoQiang Member Join Date: Nov 2001 Posts: 41

I think I scored 29 confidently but don't know whether this is enough to pass the exam. So sad.
#38
11-12-2001, 03:24 PM
 rawl316 Member Join Date: Nov 2001 Location: I wake up in the morning and I piss excellence Favorite beer: Blue Moon Posts: 13,576

For the monopoly question, it is definitely shifting the demand curve out. When this happens, the equilibrium price goes up and the quantity demanded goes up too. Companies that couldn't afford to make the product because they wouldn't make their money back will now join because they would have P=MC. Also, the monopolist would then have to spend more money to make more of the next product.

 Thread Tools Display Modes Linear Mode

 Posting Rules You may not post new threads You may not post replies You may not post attachments You may not edit your posts BB code is On Smilies are On [IMG] code is On HTML code is Off

All times are GMT -4. The time now is 09:32 PM.

 -- Default Style - Fluid Width ---- Default Style - Fixed Width ---- Old Default Style ---- Easy on the eyes ---- Smooth Darkness ---- Chestnut ---- Apple-ish Style ---- If Apples were blue ---- If Apples were green ---- If Apples were purple ---- Halloween 2007 ---- B&W ---- Halloween ---- AO Christmas Theme ---- Turkey Day Theme ---- AO 2007 beta ---- 4th Of July Contact Us - Actuarial Outpost - Archive - Privacy Statement - Top