the exam

[Djb116]

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.

F*** me man! I divided by the MV, s/b be avg. BV now that I thought about it.

[mopete]

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!

[Djb116]

If you guys get a chance, can everyone post their answers at http://www.rogerlee.com/mc. It only takes two minutes.

u added an extra . to the URL. the URL is http://rogerlee.com/mc

[Djb116]

oops....sorry about that

[GuoQiang]

I think I scored 29 confidently but don't know whether this is enough to pass the exam. So sad.

[rawl316]

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.