Econ 301

Study Guide

Exam #3

Deiter, F09

Date: F Nov 20

Location: 2115 Pearson (regular classroom)

Material/topics:

Lectures: W Oct 21 thru M Nov 16

Units: 5 (start w/ optimal input use) - 7 (thru LR cost min)

Readings & homework (see topic outline, announcements)

In classes (#10-#12) & quizzes: (#9-#11)

Format:

16 short answer Q’s

Hints:

1. Calculate break even Q of output

2. Apply derived D for input concepts

3. Draw TR curve for given P

4. Draw TC curve given TVC and TFC

5. Calculate profit at given Q, or profit-maximizing Q

6. Show profit in TR, TC diagram

7. Given production function, calculate TVC & AVC equations

8. Given diagram of AVC, AFC, ATC, calculate corresponding TVC, TFC, TC at given Q

9. Given LR production function equation and input prices:

a. Derive isoquant equation for given Q & graph it

b. Calculate & explain MRTS at given pt on isoquant

c. Find LR cost-minimizing input quantities given Q

d. Find LR max output given prod fn and isocost line

e. Derive isocost equation