JAWABAN

QUIZ - UAS

UJIAN AKHIR SEMESTER

MANAGERIAL ECONOMICS
MAGISTER MANAGEMENT FEB-UGM
DOSEN : HENGKI PURWOTO

1. a. Equating MR and MC yields 100 - 4Q = 2Q. Solving for Q yields Q = 16 2/3. By

plugging this back into the inverse demand equation, we get P = $66 2/3.
b. See Figure 08-01.
c. See Figure 08-01.
d. Under perfect competition, market equilibrium is where the demand curve
intersects industry marginal cost. Thus, the competitive price is $50, and the
quantity is 25 units. The deadweight triangle in Figure 08-01 is.5(66.67 -
33.33)(25 - 16.67) = $138.86.

2. a. The follower's reaction function is QF = 831.25 - .5QL.

b. The leader's output is:

Similarly, QF = 831.25 - .5(832.9) = 414.8 units. Thus, the price of output is

given by P = 10,000 - 6(832.9 + 414.8) = $2,513.8.
c. πL = 2,513.8(832.9) - 15(832.9) = $2,081,250.5; πF = $1,032,354.2.

3. a. Yes, regardless of BP’s strategy, Exxon should choose to drill two wells. If BP
chooses to drill one well, $12,000 > $10,000. If BP chooses to drill two wells,
$8,000 >$6,000.

b. Yes, regardless of Exxon’s strategy, BP should choose to drill two wells. If

Exxon chooses to drill one well, $12,000 > $10,000. If Exxon chooses to drill
two wells, $8,000> $6,000.

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 c. Yes. Exxon has a dominant strategy to drill two wells. BP has a dominant
strategy to drill two wells. If Exxon drills two wells, BP cannot do any better
than drilling two wells. If BP drills two wells, Exxon cannot do any better than
drilling two wells. Thus, the Nash equilibrium is for each firm to drill two wells.

4. P = [EF/(1 + EF)]MC = 1.4MC. Thus, your price should be 1.4 times marginal cost,
or $1.40 per gallon.

5. The expected inverse demand curve is 0.2(100,000 – 4Q) + 0.6(115,000 – 3Q) +

0.2(130,000 – 2Q) = 115,000 – 3Q.
Thus, expected marginal revenue is E(MR) = 115,000 − 6Q. Equating expected
MR and MC yields 115,000 − 6Q = 2 + Q, so that the profit-maximizing level of
homes to start is Q = 16,428.29.