ECON2004 S1 2015 Tutorial Guide For Students - Updated

ECON2004 Tutorial Guide, Semester 1/Tri1A 2015
ECON2004 S1/Tri1A 201 5 Tutorial Guide
Class Assignments (15%)

15% of your mark is allocated to the extent to which you: Participate in class
activities, by raising questions, providing and individually presenting answers to
specific questions listed in this guide, preparing for class, promoting positive
group dynamics, and encouraging other students to participate. These activities
collectively refer to the class assignments for this unit. You are expected to
participate in each tutorial by reading all prescribed chapters and preparing
answers to the assigned questions shown below.
The 15 marks awarded for this assessment are made up of 2 components, as
summarised in Table 1 below:
Table 1. Marking Criteria for Class Assignments
Components:
1. PRESENTATION
2.
PREPARATION
&
CONTRIBUTION
Marks
Possible Score & Explanation

(out of 4)
Introduction of Theory
(out of 1)
Content from Sources
(out of 2)
Applications and Evaluation of Issues
8 =
Demonstrated preparation of all questions; Outstanding &

Lively Contributions, Critical Comments, Lead Discussions,
Very Enthusiastic and/or Highly Motivated.
6 =
Demonstrated preparation of most questions; Good

Contributions, and/or mostly Enthusiastic.
3 =
Demonstrated preparation of few questions; Attended

regularly, promoting some sociality and the odd comment.
0 =
Weak participation, unenthusiastic, no or little preparation, or

did not attend frequently.
1. PRESENTATION
Score is out of 7. Each student will do one 5-minute presentation and lead 5
minutes of class discussion relating to the presentation. The list of possible
presentations is listed under PRESENTATION QUESTIONS (PQs) headings
in the Tutorial Guide below. The presentations begin in Week 2. You select
your topic in the first tutorial (in Week 1). The allocation of PQs will be done
on a first--come--first--served basis in this tutorial. It is the responsibility of
each student to know the week in which they are presenting therefore,
Page 1 of 21

missing your presentation will result in a score of 0. At the end of the
presentation you are to hand the notes and slides that you used to your tutor.
2. PREPARATION & CONTRIBUTION
Score is out of 8. Your preparation and general class contribution
will be assessed throughout the semester. You will be awarded marks according
to the extent that you (a) demonstrate that you have attempted the tutorial
questions; b) contribute constructively to other students presentations and to the
class discussion of tutorial questions throughout the semester; and (c) contribute
to a positive group environment in the tutorials. Your tutor will keep a general
note of your preparation, how much you contribute to class discussions, and
your contribution to the group environment.
**PLEASE NOTE: IN THIS GUIDE PARTS 1 & 2

(DEFINITIONS, DIAGRAMS & CONCEPTS) ARE PROVIDED
AS A GUIDE ON WHAT YOU MUST COVER IN YOUR
READING OUTSIDE OF CLASS TIME. THE TUTORIAL TIME
WILL BE LARGELY TAKEN UP BY PARTS 3 & 4.
Page 2 of 21
PERSONA L INFORMATION
Student Name:
___ __ __ __ __ __ __ __ __ ___ __ __ __ _ _ _ _ __ _ __ __ _ __ _ __ _ _
Student ID:
___ __ __ __ __ __ __ __ __ ___ __ __ __ _ _ _ _ __ _ __ __ _ __ _ __ _ _
Week __ & Topic of my p resentation :
___ __ __ __ __ __ __ __ __ ___ __ __ __ _ _ _ _ __ _ __ __ _ __ _ __ _ _
My Tutorial Time:
___ __ __ __ __ __ __ __ __ ___ __ __ __ _ _ _ _ __ _ __ __ _ __ _ __ _ _
My Tutors Name:
___ __ __ __ __ __ __ __ __ ___ __ __ __ _ _ _ _ __ _ __ __ _ __ _ __ _ _
Page 3 of 21

Program Calendar
Week
Begin Date
Lecture/
Seminar
Pre-readings
Tutorial/Other
1.
2 March
Consumer Behaviour Part

1
Ch 3.1, 3.2
Introduction, Building;
Rapport, Allocation of
Presentation Tasks
2.
9 March
Consumer Behaviour Part

2
Ch 3.3, 3.5; 4.1,

4.2
Consumer Behaviour
Part 1
see Tutorial Guide

"week 2"
3.
16 March
Consumer Behaviour &

Uncertainty
Ch 5.1, 5.2, 5.6
Consumer Behaviour
Part 2
see Tutorial Guide

"week 3"
4.
Production & Costs
Ch 6, Ch 7.2 - 7.4
Choice Behaviour &
23 March
see Tutorial Guide

"week 4"
5.
30 Mar
Market Structure Part 1
Ch 8: pp. 279-88,
301303
6.
6 April
Tuition Free Week
7.
13 April
Tuition Free Week
8.
20 April
Semester Test
Uncertainty
Production & Costs
Assessment Due
see Tutorial Guide

"week 5"
Semester Test; for

tutorial work also
see Tutorial Guide
"week8"
9.
27 April
Ch 10: pp. 35761; 369-71; 37581. Ch 11: pp.

399-410;
10.
4 May
Game Theory Part 1
Ch 13
see Tutorial Guide

"week 10"
11.
11 May
Game Theory Part 2
Ch 13
Game Theory Part 1
see Tutorial Guide

"week 11"
12.
18 May
Factor Markets
Ch 14
Game Theory Part 2
Essay due; for

tutorial work also
see Tutorial Guide
"week 12"
13.
25 May
Asymmetric Information
Ch 17
Factor Markets
see Tutorial Guide

"week 13"
14.
1 June
Revision
Asymmetric
Information
see Tutorial Guide

"week 14"
15.
8 June
Study Week
16.
15 June
Examinations
17
22 June
Examinations
Page 4 of 21
Recap on Semester Test

WEEK 1: Introductions, Building Rapport, Allocation of
Presentations
The purpose of this tutorial is to meet your tutor and other class members, and to allocate
tutorial presentation topics.
Student Name:
___ __ __ __ __ __ __ __ __ ___ __ __ __ _ _ _ _ __ _ __ __ _ __ _ __ _ _
Student ID:
___ __ __ __ __ __ __ __ __ ___ __ __ __ _ _ _ _ __ _ __ __ _ __ _ __ _ _
Week __ & Topic of my p resentation :
___ __ __ __ __ __ __ __ __ ___ __ __ __ _ _ _ _ __ _ __ __ _ __ _ __ _ _
My Tutorial Time:
___ __ __ __ __ __ __ __ __ ___ __ __ __ _ _ _ _ __ _ __ __ _ __ _ __ _ _
My Tutors Name:
___ __ __ __ __ __ __ __ __ ___ __ __ __ _ _ _ _ __ _ __ __ _ __ _ __ _
**PLEASE NOTE Again: IN THE MODULES IN THE

REMAINDER OF THIS GUIDE PARTS 1 & 2 (DEFINITIONS,
DIAGRAMS & CONCEPTS) ARE PROVIDED AS A GUIDE ON
WHAT YOU MUST COVER IN YOUR READING OUTSIDE OF
CLASS TIME. THE TUTORIAL TIME WILL BE LARGELY
TAKEN UP BY PARTS 3 & 4.
Page 5 of 21

WEEK 2 Consumer Behaviour - Part 1
Text: Chapters 3.1 &3.2
Part 1 Definitions (defn) and Diagrams (Diag)
Budget constraint (defn + formula + Diag); indifference and indifference curve (Diag),
indifference maps for typical goods, bads and neutral goods (Diag); transitive
preferences; utility/satisfaction; Marginal Rate of Substitution (MRS) (defn + Diag),
diminishing MRS, perfect substitutes (defn + Diag), perfect complements (defn + Di
ag).
Part 2 Key Concepts
According to the theory, what criteria do consumers use to rank alternative

baskets of goods?
Distinguish between an indifference curve and a demand curve (include Diag).
What happens to the budget line with (a) changes in income? (b) changes in
prices?
Explain the link between the price ratios of two goods, the slope of the budget
line and indifference curve.
Part 3 Tutorial Questions
1. Textbook Review Question Ch 3 p. 106: Q4;

2. Bobby is a college student who has $500 of income to spend each semester on books and
pizzas. The price of a pizza is $10 and the price of a book is $50. Diagram Bobby's
budget constraint. Now, suppose Bobby's parents buy him a $300 gift certificate each
semester that can only be used to buy books.
Diagram Bobby's budget constraint when he has the gift certificate in addition to his
$500 income. Is Bobby better-off with the gift certificates?
Part 4 Presentation Questions
1. Using some original (i.e. non textbook) examples, identify some situations where
companies might use indifference curves and budget lines in their decision- making
(Hint: see example 3.3 in the text). Identify some of the difficulties that might be
associated with using the approach.
2. Money can buy you happiness! Discuss with reference to the theory and some
empirical evidence on the issue.
Page 6 of 21

WEEK 3 Consumer Behaviour-Part 2
Text: Chapters 3.3&3.5, 4.1&4. 2
Part 1 Definitions and Diagrams
Marginal utility, point of maximum utility, price consumption curve (Diag), income
consumption curve, Engel curve (Diag), income and substitution effects (as a result of a
price change) (Diag), inferior good.
Part 2 Key Concepts
Explain how a consumers MRS and her budget line are relevant to consumption
choice (Diag).
The effects of price changes (both rises and falls) on consumer choice (Diags).
The effect of income changes (both rises and falls) on consumer choice (Diags).
How are inferior goods different from normal goods when income changes? (Diags)
With the use of diagrams explain the income and substitution effects that occur when
the price of a good changes (show both price rise and price fall).
o How does this effect differ if the good is an inferior good? (Diags)
1. Lisa's budget line and her satisfaction maximizing market basket A are shown in the
diagram below.
a. Suppose that Lisa is given $50 worth of coupons that must be spent on food. How
will the coupons alter Lisa's budget line?
b. Suppose that Lisa is given $50 in cash instead of $50 in coupons. How will this
alter Lisa's budget line?
c. Is Lisa indifferent between the food coupon and cash program, or does she prefer
one program over the other? Draw an indifference curve to illustrate your answer.
Page 7 of 21
2. Margaret's optimal consumption is shown in the diagram below for two different
prices of Hy-Vee Cola. Decompose the change in Hy-Vee Cola consumption into
income and substitution effects. Do the effects work in opposite directions? Is the
cola a normal good?
3. Daniel derives utility from only two goods, cake (Qc) and donuts (Qd). The
marginal utility that Daniel receives from cake (MUc) and donuts (MUd) are given
as follows:
MUc = Qd
MUd = Qc
Daniel has an income of $240 and the price of cake (Pc) and donuts (Pd) are both $3.
a) What is Daniel's budget constraint?
b) What quantity Qc will maximize Daniel's utility given the information above?
c) Holding Daniel's income and Pd constant at $240 and $3 respectively, what is
Daniel's demand curve for cake?
1. Using theory and some data, discuss the possible income and substitution effects of a
rise in household electricity prices. How might these effects be relevant to attempts to
reduce carbon emissions?
2. Using theory and some data, discuss the possible effects of a reduction in government
subsidies for medical consultations. [Hint, in Australia, the government is currently
proposing the introduction of a co-payment scheme; see http://theconversation.com/sixdollar-co-payment-to-see-a- doctor-a-gps-view-21915].
Page 8 of 21

WEEK 4 Consumer Behaviour & Uncertainty
Text: Chapters 5.1 - 5.2, 5.6
Expected payoff value (formula), Expected utility (formula), risk variability, variance and
standard deviation, risk preference (Diags), risk premium (Diags), risk aversion strategies
(examples), Traditional Economics, Behavioural Economics [e.g. reference points,
adaption, fairness, probability] (examples).
Part 2 Key Concepts
Calculate: payoff value from given data
Calculate: expected utility from given data
Calculate: variance and standard deviation from given data
What is the link between risk and variance?
How does attitude to risk affect choices in labour and financial markets?
Compare the main ways in which behavioural economics is different from traditional
economics.
1. Textbook Exercise Questions Ch 5 p. 198: Ex1.

1. A recent Cambridge University-led study found that high levels of stress cause people
to become more risk averse: (http://theconversation.com/high-stressed-traders-morerisk-averse-study-finds-23302). Summarise the findings from the study and explain
the implications of the findings for share markets and the economy.
2. Example 5.10 in the text (p. 196) outlines some evidence on how taxicab drivers
decide their hours of work. Summarise this evidence and discuss the relevant concepts
from behavioural economics.
Page 9 of 21

WEEK 5 Production and Costs
Text: Chapters 6 & 7.2 7.4
Inputs, production function (mathematical formula), cost constraint, isoquant and isoquant
map (Diags), Marginal rate of Technical Substitution (MRTS) (graph, formula +calculation),
Diminishing MRTS, Marginal productivity of capital, Marginal productivity of labour (short
run and long run) (Diag), perfect substitute inputs (Diag), perfect complement inputs (Diag),
Returns to Scale (3 Diags), isocost line (Diag, formula + calculation), Long run and short run
expansion paths (Diags).
Part 2 Key Concepts
Calculate output using the production function.
What is the link between the MRTS and the shape of an isoquant?
With the use of a formula, explain the link between the price of inputs, their MRTS,
and cost minimisation.
Explain the link between the relative cost of inputs and an isocost line.
With the use of Diagrams show how a change in the cost of an input affects isocosts
when: a) there is no input substitution; and b) input substitution is possible.
With the use of a Diagram show how isocosts and isoquants can be used to determine
the cost minimising output.
Using both a Diagram and the correct formula, show the link between the price of
inputs and cost minimisation where: a) there is no input substitution; and b) input
substitution is possible.
1. You are given the following table for a production process which has two variable
outputs.
a. Sketch the isoquants corresponding to the following output levels: 60, 70, 85, 95, 105,
and 115. What returns to scale does the production function exhibit? What can be said
of the MRTS?
b. Analyze the marginal productivity of labor and capital for the production function.
Page 10 of 21

3. Textbook Review Questions Ch 7 p. 270: Q5.
1. Using theory and some data, discuss the possible effects of a carbon tax on
companies use of different sources of energy. How might these effects be relevant to
attempts to reduce carbon emissions?
2. Collect some evidence on recent changes in productivity in Australia, and contribute

some ideas about the sources of these changes.
Page 11 of 21

WEEK 6 Tuition Free Week
WEEK 7 Tuition Free Week
Page 12 of 21

WEEK 8 Market Structures - Part 1
Note: The Semester Test will be held in the usual lecture
venue during the usual lecture time .
Text : Chapter 8: pp. 279 288, 301 303
Perfectly competitive market, profit maximisation (Diags: TR and TC, MR and MC,
Short run losses and Shut down)
Part 2 Key Concepts
What are the key assumptions of a perfectly competitive market?
According to the theory why can perfectly competitive firms make no economic profit
in the long run?
1. The table below lists the short-run costs for One Guy's Pizza. If One Guy's can sell all
the output they produce for $12 per unit, how much should One Guy's produce to
maximize profits? Does One Guy's Pizza earn an economic profit in the short-run?
Will this profit be greater or less than Guys accounting profit? Will he remain in the
market?
Q
TFC
TVC
58
100
336.4
59
100
348.1
60
100
360
61
100
372.1
ATC
AVC
MC
Profits
2. Assume the market for tortillas is perfectly competitive. The market supply and
demand curves for tortillas are given as follows:
Supply curve: P = .000002Q
Demand curve: P = 11 - .00002Q
The short run marginal cost curve for a typical tortilla factory is: MC =0.1 +0.0009Q
a. Determine the equilibrium price for tortillas.
b. Determine the profit maximizing short run equilibrium level of output for a tortilla
factory.
c. Assuming that all of the tortilla factories are identical, how many tortilla
Page 13 of 21

factories are producing tortillas?
d. Sketch relevant market and firm diagrams for this scenario
1. Can you identify any markets that are perfectly competitive? If yes, provide details
and justification. If no, explain/justify your conclusion. Discuss the usefulness of this
theory.
2. Using the theory of perfect competition to describe changes in prices, output and
profits in a market of your choice.
Page 14 of 21

WEEK 9 Recap on Semester Test
The test questions and results will be reviewed in this tutorial
Page 15 of 21

WEEK 10 Market Structures - Part 2
Text:
Chapter 10: pp. 357 361, 369 371, 375 381; Chapter 11: pp. 395 - 405
Monopoly, Profit maximisation under monopoly (Diag), monopoly power, Deadweight
Loss, Price Regulation, Natural Monopoly, First-Degree Price Discrimination, Second
Degree Price Discrimination.
Part 2 Key Concepts
What are the key assumptions of a monopoly?
How do monopolies compare to perfect competition?
According to the theory, why are monopolies inefficient?
How does price discrimination enable monopolies to increase profits? Can this benefit
consumers?
1. A monopolist is deciding how to allocate output between two geographically

separated markets (East Coast and Midwest). Demand and marginal revenue for the
two markets are:
P1 15 Q1
MR1 15 2Q1
P2 25 2Q2
MR2 25 4Q2
The monopolists total cost is C=5+3(Q1 +Q2). Hence MC=3.

a. What are price, output, & profits if the monopolist can price discriminate?
b. If the law prohibits charging different prices in the two regions what is likely to
happen to prices, output and profits?
2. The figure below illustrates the situation facing the only coffee shop in an isolated
community:
a. On the graph, draw the coffee shops marginal revenue curve.

Page 16 of 21

b. What is the number of cups of coffee that will maximise the coffee shops profit?
c. What price will the coffee shop charge?
d. What is the coffee shops daily total revenue?
e. At the price charged for a cup of coffee, is the demand elastic or inelastic? Why?
f. Might the coffee shop try to price discriminate? Explain why or why not.
1. Using some original examples, describe and discuss price discrimination.

2. Using theory and examples, discuss the proposition that monopolies are always bad.
Page 17 of 21

WEEK 11 Game Theory - Part 1
Text: Chapter 13
Game, strategy, payoffs, Cooperative vs. non-cooperative game, possible decision tree
(Diag), Dominant strategy, Maximin strategy, Nash equilibrium.
Part 2 Key Concepts
Use numeric examples to show when a firm DOES have a dominant strategy and one
where it DOES NOT have a dominant strategy.
Use a numeric example to show a maximin strategy and explain why a firm might
choose to use this type of strategy.
Use a numeric example to show where a Nash equilibrium would apply, another to
show where it would not apply and another to show a case where there are 2 Nash
equilibriums.
Compare the differences for a firm between a dominant equilibrium and a Nash
equilibrium.
With the use of a numeric example explain The Prisoners Dilemma and use this to
compare the 3 possible equilibriums.
1. Textbook Exercise Questions Ch 13 p. 525: Ex3a

2. Textbook Exercise Questions Ch 13 p. 526: Ex5a
3. Textbook Exercise Questions Ch 13 p. 526: Ex5b
1. Describe and discuss the prisoner dilemma game.

2. Using some evidence, discuss the relevance of the prisoner dilemma concept to
business decision-making in oligopolistic markets (other than retail grocery).
Page 18 of 21

WEEK 12 Game Theory - Part 2
Text: Chapter 13
Tit-for-Tat strategy (in theory and in the real world), Cooperative outcome vs.
Cooperative game, sequential games with a first mover advantage, pure vs. mixed
strategies, strategic advantage, strategic actions.
Part 2 Key Concepts
Use a numerical example to show the outcomes of a sequential game with a first
mover advantage.
Use a numerical example to compare how pure and mixed strategies might apply.
Explain what is meant by a strategic advantage and outline the 4 main strategies to
gain such an advantage.
Use a range of examples to show how a firm might apply strategic actions to gain a
strategic advantage.
1. Textbook Exercise Questions Ch 13 p. 526: Ex3b

2. Textbook Exercise Questions Ch 13 p. 526: Ex3c
3. Textbook Exercise Questions Ch 13 p. 526: Ex5c
4. Textbook Exercise Questions Ch 13 p. 526: Ex5d
1. Discuss how Jim and Joan are likely to find a solution to the battle of the sexes
game (textbook, p. 497).
2. Using theory and some evidence, discuss the types of strategic actions taken by
companies in the airline industry.
Page 19 of 21

WEEK 13 Factor Markets
Text: Chapter 14
Factor markets, Marginal Revenue Product (MRPL) (include formula), Competitive
factor market vs. Monopsonistic buyer of factor, income leisure choice model (Diag that
includes indifference curves), backward bending labour supply curve (Diag).
Part 2 Key Concepts
When hiring labour what is the link between marginal expenditure (ME) and MRP?
Explain a firms short run demand for labour (include a Diag), and explain what
factors might lead to a change in that demand.
Compare the short run and long run demand for labour for a firm (include a Diag).
Make a comparison about a firms demand for labour for the following three
scenarios: (i) factor market is competitive; (iii) when the factor market is a
monopolistic seller. (Include Diagrams in your comparisons.) [Hint make a pointby-point comparison, not just separate lists of characteristics of each scenario.]
Use the income leisure choice model to show the income and substitution effects of a
wage rise and a wage fall (include Diags).
How is the effect different if the labour supply is backward bending?
1. Textbook Exercise Questions Ch 14 p. 556: Ex 1

2. Textbook Exercise Questions Ch 14 p. 556: Ex 2
1. Using theory and some evidence, discuss the possible effects of a reduction in
penalty rates* on labour demand.
2. Using theory and some evidence, discuss the possible effects of a reduction in
penalty rates* on labour supply.
*Penalty rates are higher rates of pay for working at night or on weekends. In Australia,
some people are proposing that the rates should be abolished. For a discussion, see, for
example: http://theconversation.com/viewpoints-should-penalty-rates-be-abolished22819
Page 20 of 21

WEEK 14 Asymmetric Information
Text: Chapter 17
Asymmetric information, adverse selection, moral hazard (Di a g ), Principal- agent
problem, market signaling.
Part 2 Key Concepts
Explain the lemons problem with reference to purchasing used cars (include Di a g ).
How does adverse selection potentially create problems for the insurance industry?
How can a company bring about a reduction in a) adverse selection and b) moral
hazard?
What might give rise to a Principal-Agent problem and with the use of a diagram
show how can this problem be minimised?
Outline the value of market signalling to: a) buyers of products; b) employers; and c)
students.
1. Textbook Review Questions Ch 17 p. 657: Q6

2. Textbook Exercise Questions Ch 17 p. 657: Ex3
3. Textbook Exercise Questions Ch 17 p. 658: Ex8
1. Explain and discuss the proposition that education does nothing to increase ones
productivity; its only value is as a signal (see textbook, p. 640).
2. Discuss the relevance of the theory of asymmetric information to understanding

financial markets.
Page 21 of 21

ECON2004 S1 2015 Tutorial Guide For Students - Updated

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ECON2004 Tutorial Guide, Semester 1/Tri1A 2015

ECON2004 S1/Tri1A 201 5 Tutorial Guide

Class Assignments (15%)

Possible Score & Explanation

Content from Sources

Applications and Evaluation of Issues

Demonstrated preparation of all questions; Outstanding &

Demonstrated preparation of most questions; Good

Demonstrated preparation of few questions; Attended

Weak participation, unenthusiastic, no or little preparation, or

ECON2004 Tutorial Guide, Semester 1/Tri1A 2015

**PLEASE NOTE: IN THIS GUIDE PARTS 1 & 2

ECON2004 Tutorial Guide, Semester 1/Tri1A 2015

ECON2004 Tutorial Guide, Semester 1/Tri1A 2015

Consumer Behaviour Part

Consumer Behaviour Part

Ch 3.3, 3.5; 4.1,

see Tutorial Guide

Consumer Behaviour &

Ch 5.1, 5.2, 5.6

see Tutorial Guide

Production & Costs

Choice Behaviour &

see Tutorial Guide

Market Structure Part 1

Tuition Free Week

Tuition Free Week

Market Structure Part 1

see Tutorial Guide

Semester Test; for

Market Structure Part 2

Ch 10: pp. 35761; 369-71; 37581. Ch 11: pp.

Game Theory Part 1

Market Structure Part 2

see Tutorial Guide

Game Theory Part 2

Game Theory Part 1

see Tutorial Guide

Game Theory Part 2

Essay due; for

see Tutorial Guide

see Tutorial Guide

Recap on Semester Test

ECON2004 Tutorial Guide, Semester 1/Tri1A 2015

**PLEASE NOTE Again: IN THE MODULES IN THE

ECON2004 Tutorial Guide, Semester 1/Tri1A 2015

According to the theory, what criteria do consumers use to rank alternative

Distinguish between an indifference curve and a demand curve (include Diag).

Part 3 Tutorial Questions

1. Textbook Review Question Ch 3 p. 106: Q4;

ECON2004 Tutorial Guide, Semester 1/Tri1A 2015

Part 3 Tutorial Questions

ECON2004 Tutorial Guide, Semester 1/Tri1A 2015

ECON2004 Tutorial Guide, Semester 1/Tri1A 2015

Calculate: payoff value from given data

Calculate: expected utility from given data

Calculate: variance and standard deviation from given data

What is the link between risk and variance?

Part 3 Tutorial Questions

1. Textbook Exercise Questions Ch 5 p. 198: Ex1.

ECON2004 Tutorial Guide, Semester 1/Tri1A 2015

Calculate output using the production function.