Yeah yeah I know I know

I owe you guys some extra credit. The problem became one where I just didn't want another assignment to grade.

So I'm just going to tack on two extra points. We did wind up with 15 homework points. I'll figure out the scale before adding the extra points. So it will help a few of you that are on the margin.

I hope that is satisfactory. I mean at the end of the day, did you really want another assignment?

It's the best I can do. Protest if you wish. Berate me on ratemyprofessor.com. Or be happy that the course is over and at the end of the day it wasn't that bad.

For all of you who worked through the practice problems: aren't you glad you did. ;-)

Have a great summer, folks. I hope to see you in another econ class down the road. If you have any questions on majoring or minoring in economics, please do not hesitate to talk to me. We are a good department and the economics major/minor looks very good on the transcript!

I had a great time this semester. You were a very fine class. Lots of participation. You were awesome.

JJ

from that game theory problem on the exam review handout

A.
Does either company have a dominant strategy? If so, explain.
Nike has a dominant strategy to price “High”. Adidas does not have a dominant strategy.
B.
What will be the outcome (Nash-equilibrium) of the game?
This game will still have an outcome: Adidas can determine that Nike will play High., so it will go High too.
C.
If Nike becomes the acknowledged price leader in the industry (that is, they get to move first), what will be its dominant strategy? What will be the outcome of the game?
Nike would choose the outrageously high price if it believed that Adidas would follow. Nike would earn $1.2 million in profits and Adidas would earn $600,000 in profits. While Nike would have an incentive to charge the high price if Adidas charged the outrageously high price, Nike would know that Adidas would follow Nike’s pricing, and this would reduce Nike’s profit. Therefore, the outcome of the game with Nike as price leader is that both charge the outrageously high price.

Key to sample problems for test final

Hey folks! Sorry for the delay.

Here's a key that I got from one of your classmates. I decided to use it instead because I'm lazy. ;-) Do you think it is correct? Let me know.

1-A, 2-A, 3-B 4-A, 5-C, 6-B,
7-B, 8-B, 9-D, 10-A, 11-D*,
12-B, 13-D, 14-C, 15-B,
16-C, 17-C, 18-C, 19-A, 20-D, 21-B**,
22-D, 23-B, 24-D, 25-C, 26-A,
27-C, 28-B, 29-D, 30-C, 31-A,
32-A, 22-C, 34-D, 35-C, 36-A, 37-B,
38-C, 39-B,
40-D, 41-A, 42-A,
43-C, 44-B, 45-C, 46-B, 47-B

*The firm should cut production since its MC is too high.
**This describes economies of scale.

Sorry for all the monopolistic competition questions. You won't have many at all, however, (here's some free info for those who pay attention to these blogs) the written problem is related to monopolistic competition. It will be a game theory problem applied to choosing whether or not to advertise a product.

Also, I think there is a problem on the review sheet. A game. I have the key for that at the office. I'll have to get that on the I-drive in the morning. (I had a Senate meeting this afternoon and I did not go back to the office after the meeting as it was getting late.)

Good luck.

Test 3 results and current grade distribution

Econ 122 Test 3

Average = 29.522 (73.81%)
Median = 29 (72.50%)
Mode = 29 (72.50%)
Standard Deviation = 5.0744 (12.69%)

The following scale should be used as a guide (frequencies in parentheses):

A: 34.5 + (10)

B: 29 – 34 (17)

C: 24 – 28.5 (13)

D: 19 – 23.5 (3)

F: 18.5 and lower (2)


Updated grade distribution

Up to this point there are a total of 71 recorded points: 3 X 20 points for each test, 10 points for 9 homework assignments (one was worth 2 points), and one in-class participation credit point (a video).

Points remaining are a final exam (20 points), 5 homework points, and 4 participation credit points.

The total points recorded on your test paper do NOT include any extra credit points. All grade brackets are set without extra credit points. At the end of the semester after all points have been tabulated, the scale will be set, and then extra credit will be added and if you move into a higher test score bracket your grade will be upgraded accordingly.

Average = 56.205 out of 71 points (approx 79.29%)
Median = 55.39 points (approx 78.02%)
Standard deviation = 7.23 (approx. 10.19%)
This distribution is very close to the desired distribution of an 80% mean and a 10% standard deviation. It is converging nicely.

If I were giving grades today this is the scale that I would use (again, it does not include the extra credit points) and frequencies are in parentheses.

Out of 71 points:

A: 63.250 + (10)

B: 56.000 – 63.249 (11)

C: 48.750 – 55.99 (18)

D: 41.500 – 48.749 (5)

F: below 41.500 (1)

Please note: If you did not take one of the tests and you have to take the comprehensive final, your points and this scale is meaningless.

One more note: All of this is unofficial. The only things official are your points (if you believe they are incorrect please see me at my office).

A Gimme

Hey all

If you're planning on taking the test on Wednesday, I wanted to let you know something.

**I'm going to give you the midpoint formula for price elasticity of demand.**

Yes, it is a crazy formula. I don't want you to get bogged down on that.

However, you may have to calculate income elasticity. Just remember to change P (prices) to I (income) and you use the same formula.

Answer key to sample problems for test 3

Here is the key for the sample multiple choice problems. I apologize that a few of them are duplicates. As I've mentioned before I put these sample tests together from old tests. Sometimes questions get recycled (hmmm....).

If you think there are any errors please alert me. Also, check back for any changes.

1-C, 2-D, 3-C, 4-D, 5-C, 6-B, 7-C,
8-D, 9-C, 10-A, 11-C, 12-A,
13-D, 14-B, 15-A, 16-B,
17-B, 18-B, 19-C, 20-B, 21-D,
22-B, 23-B, 24-A, 25-B,
26-A, 27-D, 28-C,
29-B, 30-D, 31-A, 32-C, 33-B, 34-C**,
35-C, 36-A, 37-C*, 38-A*, 39-D, 40-A, 41-A,
42-D, 43-B, 44-B, 45-B, 46-B, 47-D
48-D, 49-A. (sorry I forgot these earlier. Thanks Laura.)

*I didn't talk about implicit vs. explicit costs in class. I was going to reserve that for a later discussion. I do not plan to ask questions about explicit vs. implicit costs. You just need to know the difference between fixed and variable costs for now.

**34 was initially listed as B, but the answer is C. Sorry about that. Thanks to Thesasquatch!! (And sorry this did not get updated until 2:05 this afternoon before the test.)

Class Canceled Today. Watch this space

It's no joke. Class is canceled today, Wednesday, April 1. I am ill and the doctor told me to stay home for a few days.

Watch this space for information regarding an optional make up assignment and perhaps a change in the date for the third test.