Consumer Behaviour

1. How are preferences modelled? How does the indifference map depend on assumptions about rationality? Pay particular attention to a consumer who is 'standardly' rational and one who considers X and Y to be perfect substitutes.
2. Given preferences (an utility function) and a budget constraint, how are demand functions derived? Pay particular attention to Cobb Douglas utility functions

Producer Behaviour

a) Given a technology (production function), how are the returns to labour and returns to scale determined?

b) Given the cost minimising input bundle, how are the cost functions (TC, MC, AC, AVC) derived in the short-run/long-run? Given a total cost function how to calculate the MC, AC and AVC for a given unit of output.

General Equilibrium (Graphical Analysis using the Edgeworth Box)

a) Given 2 individuals (with endowments and preferences - either Cobb Douglas or Perfect Substitutes), what is the post-trade (general equilibrium) price and allocation?