Economics 2150a -- Sample Final Exam -3- Name:________________________________________

NOTE: The answers to question 1 on this page are only the mechanical parts. For more marks you must also include a detailed explanation and interpretation!

Question 2 will be done in class.

The mechanical parts of Question 3 are given in the answers to Exercise 9.

1. SHORT RUN AND LONG RUN RETURNS

L

Q Q

L

K

L

AP MP

AP MP

SRP

φ = 2

TP

MPL

APL

•

•

0

• 1

0 •

• •

•

2

2

MPL

APL

L0 L1 L2

L0 L1 L2

9.6 21.8 39

14.4 373 27

25.9 540

209

25.9 20 9.7

40 600 15 455