Essentials of Microeconomics: Exercises

After reading the theory book about Microeconomics it is time to test your knowledge to make sure that you are well prepared for your exam.

This exercise book follows the same structure as the theory book about Microeconomics. Answer questions about for example consumer theory, demand, production and cost. All the exercises are followed by suggested solutions.

1. Consumer Theory
1.1 Preferences
1.2 The Budget Line
1.3 Utility Maximization

2. Demand
2.1 Price Changes
2.2 Income Changes
2.3 Elasticities

3. Production
3.1 Definitions
3.2 The Production Function

4. Costs
4.1 Costs in the Short Run
4.2 Costs in the Long Run

5. Perfect Competition
5.1 Definitions and Assumptions
5.2 The Firm’s Short-Run Profit Maximization
5.3 The Firm’s Long-Run Profit Maximization

6. Monopoly
6.2 Monopoly Profit Maximization and Efficiency Problems
6.3 Price Discrimination

7. Game Theory
7.1 Basic Concepts
7.2 Games on Normal Form
7.3 Games on Extensive Form

8. Oligopoly
8.2 The Cournot Model
8.3 The Bertrand Model

9. Monopolistic Competition

10. Labor
10.1 The Supply of Labor
10.2 The Demand for Labor

11. General Equilibrium
11.1 Definitions
11.2 Efficient Production

12. Choice under Uncertainty

13. Other Market Failures
13.1 Basic Concepts
13.2 Externalities
13.3 Public Goods

Suggested Solutions

1. Consumer Theory
1.1 Preferences
1.2 The Budget Line
1.3 Utility Maximization

2. Demand
2.1 Price Changes
2.2 Income Changes
2.3 Elasticities

3. Production
3.1 Definitions
3.2 The Production Function

4. Costs
4.1 Costs in the Short Run
4.2 Costs in the Long Run

5. Perfect Competition
5.1 Definitions and Assumptions
5.2 The Firm’s Short-Run Profit Maximization
5.3 The Firm’s Long-Run Profit Maximization

6. Monopoly
6.1 Monopolies
6.2 Monopoly Profit Maximization and Efficiency Problems
6.3 Price Discrimination

7. Game Theory
7.1 Basic Concepts
7.2 Games on Normal Form
7.3 Games on Extensive Form

8. Oligopoly
8.2 The Cournot Model
8.3 The Bertrand Model

9. Monopolistic Competition

10. Labor
10.1 The Supply of Labor
10.2 The Demand for Labor

11. General Equilibrium
11.1 Definitions
11.2 Efficient Production

12. Choice under Uncertainty

13. Other Market Failures
13.1 Basic Concepts
13.2 Externalities
13.3 Public Goods