Date: February 2nd, 2009 Page 1 Instructor: A. N.

Size: px
Start display at page:

Download "Date: February 2nd, 2009 Page 1 Instructor: A. N."

Transcription

1 1. Professor Bong has just written the first textbook in Punk Economics. It is called Up Your Isoquant. Market research suggests that the demand function for this book will be Q = 2, P, where P is its price. It will cost $1,000 to set the book in type. This setup cost is necessary before any copies can be printed. In addition to the setup cost, there is a marginal cost of $4 per book for every book printed. a. Find the total revenue function for Professor Bong s book. b. Find the total cost function for producing Professor Bong s book. c. Find the marginal revenue function and the marginal cost function. What is the profit-maximizing quantity of books for Professor Bong? 2. Peter Morgan sells pigeon pies from a pushcart in Central Park. Morgan is the only supplier of this delicacy in Central Park. His costs are zero due to the abundant supplies of raw materials available in the park. a. When he first started his business, the inverse demand curve for pigeon pies was P(q) = 100 q, where the price is measured in cents and q measures the number of pies sold. Use black ink to plot this curve in the graph. On the same graph, use red ink to plot the marginal revenue curve. b. What level of output will maximize Peter s profits? What price will Peter charge per pie? c. After Peter had been in business for several mohths, he noticed that the demand curve had shifted q to P(q) = 75. Use blue ink to plot this curve in the graph. Plot the new marginal revenue curve 2 on the same graph with black ink. d. What is his profit-maximizing output at this new price? What is the new profit-maximizing price? 3. Suppose that the demand function for Japanese cars in the United States is such that annual sales of cars (in thousand of cars) will be Q D (P) = 250 2P, where P is the price of Japanese cars in thousand of dollars. a. If the supply schedule is horizontal at price of $5,000, thereby the inverse supply function is P S = 5, what will be the equilibrium number of Japanese cars sold in the United States? Note that your answer is in terms of thousands of cars. How much money will Americans spend in total on Japanese cars? Date: February 2nd, 2009 Page 1 Instructor: A. N.

2 b. Suppose that in response to pressure from American car manufacturers, the United States imposes and import duty on Japanese cars in such a way that for every car exported to the United States the Japanese manufacturers must pay a tax to the U.S. government of $2,000. How many Japanese automobiles will now be sold in the United States? At what price will they be sold? c. How much revenue will the U.S. government collect with this tariff? d. Use black ink to show the inverse demand and inverse supply curves before the import duty is imposed. After the import duty is imposed, the inverse supply curve shifts up and the inverse demand curve stays as before. Use red ink to draw the new supply curve. e. Suppose that instead of imposing an import duty, the U.S. government persuades the Japanese government to impose voluntary export restrictions on their exports of cars to the United States. Suppose that the Japanese agree to restrain their exports by requiring that every car exported to the United States must have an export license. Suppose further that the Japanese government agrees to issue only 236,000 export licenses and sells the licenses to the Japanese firms. If the Japanese firms know the American demand curve and if they know that only 236,000 Japanese cars will be sold in America, what price will they be able to charge in America for their cars? f. How much will a Japanese firm be willing to pay the Japanese government for an export license? (Hint: Think about what it costs to produce a car and how much it can be sold for if you have an export license.) g. How much will be the Japanese government s total revenue from the sale of export license? h. How much money will American spend on Japanese cars? i. Why might the Japanese voluntarily submit to export controls? 4. A monopolist has an inverse demand function given by P(q) = 12 q and a cost function given by C(q) = q 2. a. What will be its profit- maximizing level of output? b. Suppose the government decides to put a tax on this monopolist so that for each unit it sells it has to pay the government $2. What will be its output under this form of taxation? c. Suppose now that the government puts a lump sum tax of $10 on the profits of the monopolist. What will be its output? Date: February 2nd, 2009 Page 2 Instructor: A. N.

3 5. Ferdinand Sludge has just written a disgusting new book, Orgy in the Piggery. His publisher, Graw McSwill, estimates that the demand for this book in the U.S. is Q U.S. = 50,000 2,000P U.S. where P U.S. is the price in America measured in U.S. dollars. The demand for Sludge s opus in England is Q E = 10, P E, where P E is its price in England measured in U.S. dollars. His publisher has a cost function C(q) = 50, q, where q is the total number of copies of Orgy that it produces. a. If McSwill must charge the same price in both countries, how many copies should it sell and what price should it charge to maximize profits? How much will those profits be? b. If McSwill can charge a different price in each country, and wants to maximize profits, how many copies should it sell in the United States? What price should it charge in the United States? How many copies should it charge in England? How much will its total profits be? 6. A monopoly faces an inverse demand function P(q) = 100 2q, and has constant marginal costs of $20. a. What is the profit maximizing level of output? b. What is its profit-maximizing price? c. What is the socially optimal price for this firm? d. What is the socially optimal level of output for this firm? e. What is the deadweight loss due to the monopolistic behavior of this firm? f. Suppose that this monopolists could operate as a perfectly discriminating monopolist and sell each unit of output at the highest price it would fetch. Find the deadweight loss in this case. 7. Banana Computer Company sells notebooks both in the domestic and foreign markets. Because of differences in the power supplies, a notebook purchased in one market cannot be used in the other market. The inverse demand associated with the two markets are as follows: P d = 20,000 20Q d P f = 25,000 50Q f Date: February 2nd, 2009 Page 3 Instructor: A. N.

4 Banana s production process exhibits constant returns to scale and it takes 1,000,000 baht to produce 100 computers. a. Find Banana s long-run average cost function and its long-run marginal cost function. (Hint: If there are constant returns to scale, does the long-run average cost change as output changes?) Draw the average and marginal cost curves on the graph. b. Draw the demand curve for the domestic market in black ink and the marginal revenue curve for the domestic market in pencil. Draw the demand curve for the foreign market in red ink and the marginal revenue cruve for the foreign market in blue ink. c. If Banana is maximizing its profits, how many computers it will sell in the domestic market? At what price in the domestic market? How many computers it will sell in the foreign market? At what price in the foreign market? What are Banana s total profits? d. At the profit-maximizing price and quantity, what is the price elasticity of demand in the domestic market? What is the price elasticity of demand in the foreign market? Is demand more or less elastic in the market where the higher price is charged? e. Suppose that somebody figures out a wiring trick that allows a Banana notebook build for either market to be costlessly converted to work in the other, i.e., consumers in either market can resell their notebooks to other consumers. (Ignoring transportation costs.) Draw the new inverse demand curve with blue ink and marginal revenue curve with black ink facing Banana. f. Given that costs have not changed, how many Banana notebooks should Banana sell? What price will it charge? How will Banana s profits change now that it can no longer practice price discrimination due to the ability to resell of consumers? 8. A monopolist has a cost function given by C(q) = q 2 and faces an inverse demand function given by P(q) = 120 q. a. What is his profit- maximizing level of output? What price will the monopolist charge? b. If the government put a lump sum tax of $100 on this monopolist, what would its output be? c. If the government wanted to choose a price ceiling for this monopolist so as to maximize consumer s and producer s surplus, what price ceiling should it choose? Date: February 2nd, 2009 Page 4 Instructor: A. N.

5 d. How much output will the monopolist produce at this price ceiling? e. Suppose that you put a specific tax on the monopolist of $20 per unit output. What would its profit-maximizing level of output be? 9. The Grand Theater is a movie house in a medium-sized college town. This theater shows unusual films and treats early-arriving movie goers to live organ music and Bugs Bunny cartoons. If the theater is open, the owners have to pay a fixed nightly amount of $500 for films ushers, and so on, regardless of how many people come to the movie. For simplicity, assume that if the theater is closed, its costs are zero. The nightly demand for Grand Theater movies by students is Q S (P S ) = P S, where Q S is the number of movie tickets demanded by students at price P S. The nightly demand for nonstudent moviegoers is Q N (P N ) = P N. a. If the Grand Theater charges a single price, P T, to everybody, find the aggregate demand function for movie tickets is Q T (P T ) = Q S (P T ) + Q N (P T ). Then find the inverse demand function P T (Q T ). b. What is the profit-maximizing number of tickets for the Grand Theater to sell if it charges one price to everybody? At what price would this number of tickets be sold? How much profits would the Grand Theater make? How many tickets would be sold to students? To nonstudents? c. Suppose that the cashier can accurately separate the students from the nonstudents at the door by making students show their school ID cards. Students cannot resell their tickets and nonstudents do not have access to student ID cards. Then the Grand Theather can increase its profits by charging students and nonstudents different prices. What price will be charged to students? How many student tickets will be sold? What price will be charged to nonstudents? How many nonstudent tickets will be sold? How much profit will the Grand Theater makes? d. Suppose that the Grand Theater can hold only 150 people and that the manager wants to maximize profits by charging prices to students and to nonstudents. If the capacity of the theater is 150 seats and Q S tickets are sold to students, (i) What is the maximum number of tickets that can be sold to nonstudents? (ii) Write the expression for the price of nonstudent tickets as a function of the number of student tickets sold. (Hint: First, find the inverse nonstudent demand function.) (iii) Write an expression for Grand Theater profits as a function of the number Q S only. (Hint: Make substitutions using your previous answers.) (iv) How many student tickets should the Grand Theater sell to maximize profits? (v) What price is charged to students? (vi) How many nonstudent tickets are sold? (vii) What price is charged to nonstudents? Date: February 2nd, 2009 Page 5 Instructor: A. N.

6 (viii) How much profit does the Grand Theater make under this arrangement? 10. (Multiplant Monopolist) Consider a monopolist with two plants with the following marginal cost functions: MC a = q a and MC b = q b. The inverse demand function is P = Q where Q = q a + q b. a. Write q a and q b as function of their MCs b In equilibrium, the MC from two plants must equal, thus MC a = MC b = MC. Write Q as a function of MC. Then, write MC as a function of Q. c. Now, you have MC and P as a function of Q. Solve for the profit maximizing level of output for each plant. d. Calculate the monopolist s profit maximizing price. e. Draw a graph showing the profit-maximizing level of output for each plant. 11. Consider a monopolist with the following inverse demand function P = Q and its 2 marginal cost is given by MC = 4 + 2Q a. Solve for the profit-maximizing price and quantity, p m and q m, respectively. b. Draw a graph labeling q m, p m, consumer s surplus, and producer s surplus. c. Calculate the monopolist s consumer s surplus and producer s surplus. d. Now, find the socially optimal level of output and price and label these on your graph as q m and p m. e. Calculate the producer s surplus and consumer s surplus at the socially optimal level of output. Label producer s surplus and consumer s surplus in this situation on the graph you drew in part b. f. Calculate the deadweight loss. Explain which portion of the deadweight loss is a loss in consumer s surplus and which portion is a loss in producer s surplus. Label the deadweight loss on the graph you drew in part b. Date: February 2nd, 2009 Page 6 Instructor: A. N.

7 12. Consider a monopolist with the following demand function P = 180 2Q. The minimum longrun marginal and long-run average costs of producing the good are LRMC e = LRAC e = 20, but this monopolist is inefficient and operating with LRMC = LRAC = 28. a. Solve for the profit-maximizing price and quantity for the inefficient monopolist. Calculate profit for the inefficient monopolist. b. Solve for the profit-maximizing price and quantity if the monopolist produced the good efficiently. Calculate profit for an efficient monopolist. c. Assume an economist believes that the monopolist is minimizing its costs when it produces with LRMC = LRAC = 28. In this case, what would be the economist s estimate of the monopolist s deadweight loss? d. We know that the monopolist is not minimizing its costs when it produces at LRMC = LRAC = 28. What is the true deadweight loss for an inefficient monopolist if a cost-minimizing monopolist would produce with lower costs LRMC e = LRAC e = 20? 13. Bubba is a monopolist in the Moonshine Industry. His cost of production is TC = 100 5q + q 2, and the inverse demand for moonshine is P = 55 2q. a. What price should Bubba charge in order to maximize profits? What is the profit maximizing level of output? Calculate profit, producer s surplus, and consumer s surplus. b. What would the output and price be if Bubba behaved like a competitive firm? Calculate profit, producer s surplus, and consumer s surplus. c. What is the deadweight loss from Bubba's monopoly? d. Suppose the government decided the price of moonshine was too high. To control the price, it sets a price ceiling of $27. How does this affect the market price, quantity, consumer s surplus, producer surplus, profits, and deadweight loss? e. Repeat part d. if the price ceiling was $23. f. Repeat part d. if the price ceiling was $12. g. Show that the monopoly outcome in part a. is not Pareto Efficient (i.e. find a Pareto Improvement). Date: February 2nd, 2009 Page 7 Instructor: A. N.

8 14. Consider a market with one producer and two groups of consumers. Suppose the demand functions are Q D1 (P 1 ) = 100 P 1 for the firrst group of consumers and Q D2 (P 2 ) = 100 2P 2 for the second group of consumers. Assume constant marginal cost of production, MC = 20. a If the producer is not able to charge different prices to individuals from the two groups, calculate the market price and quantity. Also calculate consumer s surplus, producer s surplus, and total surplus. (Hint: you need to consider the demand in the entire market.) b. Next, suppose the producer is able to charge a different price to each of the two groups of consumers. Calculate the price and quantity charged to each group of consumers. Also calculate producer s surplus, consumer s surplus for each of the two groups of consumers, and total surplus. c. Comparing part a. and b., is the producer better off if it is able to discriminate? Does total surplus increase or decrease if the monopolist can discriminate? d. Can you determine if the consumers in market 1 better off if the monopolist can discriminate? Are the consumers in market 2 better off if the monopolist can discriminate? e. Here we have 2 groups of consumers. In class, we argued that in a single market, the competitive outcome is the unique Pareto Efficient outcome. What is the Pareto Efficient outcome in this economy? Is there more than one Pareto Efficient outcome? Date: February 2nd, 2009 Page 8 Instructor: A. N.

Do not open this exam until told to do so. Solution

Do not open this exam until told to do so. Solution Do not open this exam until told to do so. Department of Economics College of Social and Applied Human Sciences K. Annen, Fall 003 Final (Version): Intermediate Microeconomics (ECON30) Solution Final (Version

More information

VERSION 1. Economics 101 Lec 3 Elizabeth Kelly Fall 2000 Midterm #3 / Version #1 December 4, Student Name: ID Number: Section Number: TA Name:

VERSION 1. Economics 101 Lec 3 Elizabeth Kelly Fall 2000 Midterm #3 / Version #1 December 4, Student Name: ID Number: Section Number: TA Name: Economics 101 Lec 3 Elizabeth Kelly Fall 2000 Midterm #3 / Version #1 December 4, 2000 VERSION 1 TF+MC roblem Total Student Name: ID Number: Section Number: TA Name: NOTE: This information and the similar

More information

Econ 2113: Principles of Microeconomics. Spring 2009 ECU

Econ 2113: Principles of Microeconomics. Spring 2009 ECU Econ 2113: Principles of Microeconomics Spring 2009 ECU Chapter 12 Monopoly Market Power Market power is the ability to influence the market, and in particular the market price, by influencing the total

More information

Monopoly and How It Arises

Monopoly and How It Arises Monopoly and How It Arises A monopoly is a market: That produces a good or service for which no close substitute exists In which there is one supplier that is protected from competition by a barrier preventing

More information

Final Exam: ECON-100A Intermediate Microeconomics Bob Baden Section I: Answer at least two questions (answer all parts of the questions you choose)

Final Exam: ECON-100A Intermediate Microeconomics Bob Baden Section I: Answer at least two questions (answer all parts of the questions you choose) Final Exam: ECON-100A Intermediate Microeconomics Bob Baden Section I: Answer at least two questions (answer all parts of the questions you choose) Question 1: (16 points) Donald Fribble is a stamp collector.

More information

Instructions: must Repeat this answer on lines 37, 38 and 39. Questions:

Instructions: must Repeat this answer on lines 37, 38 and 39. Questions: Final Exam Student Name: Microeconomics, several versions Early May, 2011 Instructions: I) On your Scantron card you must print three things: 1) Full name clearly; 2) Day and time of your section (for

More information

FINALTERM EXAMINATION FALL 2006

FINALTERM EXAMINATION FALL 2006 FINALTERM EXAMINATION FALL 2006 QUESTION NO: 1 (MARKS: 1) - PLEASE CHOOSE ONE Compared to the equilibrium price and quantity sold in a competitive market, a monopolist Will charge a price and sell a quantity.

More information

Introduction to Agricultural Economics Agricultural Economics 105 Spring 2012 Second Hour Exam Version 1

Introduction to Agricultural Economics Agricultural Economics 105 Spring 2012 Second Hour Exam Version 1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2012 Second Hour Exam Version 1 There is only ONE correct answer per multiple choice question. Please put your answer on the

More information

2000 AP Microeconomics Exam Answers

2000 AP Microeconomics Exam Answers 2000 AP Microeconomics Exam Answers 1. B Scarcity is the main economic problem!!! 2. D If the wages of farm workers and movie theater employee increase, the supply of popcorn and movies will decrease (shift

More information

Practice Final Exam. Write an expression for each of the following cost concepts. [each 5 points]

Practice Final Exam. Write an expression for each of the following cost concepts. [each 5 points] Practice Final Exam Total : 200 points Exam time: 7:00 9:00. You have 6 questions in 3 pages. Please make your diagrams clear and label it. Good Luck! 1. Amy is currently spending her income to maximize

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. FIGURE 1-2

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. FIGURE 1-2 Questions of this SAMPLE exam were randomly chosen and may NOT be representative of the difficulty or focus of the actual examination. The professor did NOT review these questions. MULTIPLE CHOICE. Choose

More information

Introduction to Agricultural Economics Agricultural Economics 105 Spring 2011

Introduction to Agricultural Economics Agricultural Economics 105 Spring 2011 Name Section (1 point) Introduction to Agricultural Economics Agricultural Economics 105 Spring 2011 Second Hour Exam Version 1 For the multiple choice questions, circle the most correct answer, there

More information

Monopoly Monopoly occurs when there is a single seller of a good or service. Despite this simple definition that is usually given in textbooks, we

Monopoly Monopoly occurs when there is a single seller of a good or service. Despite this simple definition that is usually given in textbooks, we Monopoly Monopoly occurs when there is a single seller of a good or service. Despite this simple definition that is usually given in textbooks, we must criticize it a bit. Monopoly occurs when there is

More information

ECON 251 Practice Exam 2 Questions from Fall 2013 Exams

ECON 251 Practice Exam 2 Questions from Fall 2013 Exams ECON 251 Practice Exam 2 Questions from Exams Gordon spends all his income on spatulas and mixing bowls. Spatulas cost $4 and mixing bowls cost $12. Gordon has $60 of income and considers both spatulas

More information

Chapter 7: Market Structures Section 2

Chapter 7: Market Structures Section 2 Chapter 7: Market Structures Section 2 Objectives 1. Describe characteristics and give examples of a monopoly. 2. Describe how monopolies, including government monopolies, are formed. 3. Explain how a

More information

Monopolistic Markets. Regulation

Monopolistic Markets. Regulation Monopolistic Markets Regulation Comparison of monopolistic and competitive equilibrium output The profits of a monopolist are maximized when MC(Q M ) = P(Q M ) + Q P (Q M ) negative In a competitive market:

More information

Monopoly. Cost. Average total cost. Quantity of Output

Monopoly. Cost. Average total cost. Quantity of Output While a competitive firm is a price taker, a monopoly firm is a price maker. A firm is considered a monopoly if... it is the sole seller of its product. its product does not have close substitutes. The

More information

ECMC02H Intermediate Microeconomics - Topics in Price Theory

ECMC02H Intermediate Microeconomics - Topics in Price Theory 1 ECMC02H Intermediate Microeconomics - Topics in Price Theory Answers to the Term Test June 23, 2010 Version A of the test Your name (Print clearly and underline your last name) Your student number 1.

More information

Unit 4: Imperfect Competition

Unit 4: Imperfect Competition Unit 4: Imperfect Competition 1 Monopoly 2 Characteristics of Monopolies 3 5 Characteristics of a Monopoly 1. Single Seller One Firm controls the vast majority of a market The Firm IS the Industry 2. Unique

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. HW 2 - Micro - Machiorlatti MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is measured by the price elasticity of supply? 1) A) The price

More information

Practice Test for Final

Practice Test for Final Name: Class: Date: Practice Test for Final True/False Indicate whether the statement is true or false. 1. A public good or service can be consumed by paying and nonpaying customers alike. 2. An example

More information

PICK ONLY ONE BEST ANSWER FOR EACH BINARY CHOICE OR MULTIPLE CHOICE QUESTION.

PICK ONLY ONE BEST ANSWER FOR EACH BINARY CHOICE OR MULTIPLE CHOICE QUESTION. Econ 101 Summer 2015 Answers to Second Mid-term Date: June 15, 2015 Student Name Version 1 READ THESE INSTRUCTIONS CAREFULLY. DO NOT BEGIN WORKING UNTIL THE PROCTOR TELLS YOU TO DO SO You have 75 minutes

More information

University of Toronto February 6, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 3

University of Toronto February 6, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 3 Department of Economics Prof. Gustavo Indart University of Toronto February 6, 2009 SOLUTIONS ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 3 LAST NAME FIRST NAME STUDENT NUMBER INSTRUCTIONS: 1. The

More information

Market structures. Why Monopolies Arise. Why Monopolies Arise. Market power. Monopoly. Monopoly resources

Market structures. Why Monopolies Arise. Why Monopolies Arise. Market power. Monopoly. Monopoly resources Market structures Why Monopolies Arise Market power Alters the relationship between a firm s costs and the selling price Charges a price that exceeds marginal cost A high price reduces the quantity purchased

More information

Monopoly CHAPTER. Goals. Outcomes

Monopoly CHAPTER. Goals. Outcomes CHAPTER 15 Monopoly Goals in this chapter you will Learn why some markets have only one seller Analyze how a monopoly determines the quantity to produce and the price to charge See how the monopoly s decisions

More information

Monopoly 2. Laugher Curve. The Welfare Loss from Monopoly. The Welfare Loss from Monopoly. Bad things that monopolist do!

Monopoly 2. Laugher Curve. The Welfare Loss from Monopoly. The Welfare Loss from Monopoly. Bad things that monopolist do! Laugher Curve Monopoly 2 Bad things that monopolist do! The First Law of Economics: For every economist, there exists an equal and opposite economist. The Second Law of Economics: They're both wrong. The

More information

In-class Practice questions for Perfect Competitive Market

In-class Practice questions for Perfect Competitive Market In-class Practice questions for Perfect Competitive Market 0. Assume that a very large number of firms in an industry all have access to the same production technology. The total cost function associated

More information

ECON 2100 (Summer 2016 Sections 10 & 11) Exam #3C

ECON 2100 (Summer 2016 Sections 10 & 11) Exam #3C ECON 21 (Summer 216 Sections 1 & 11) Exam #3C Multiple Choice Questions: (3 points each) 1. I am taking of the exam. C. Version C 2. is a market structure in which there is one single seller of a unique

More information

Unit 4: Imperfect Competition

Unit 4: Imperfect Competition Unit 4: Imperfect Competition 1 Monopoly 2 Characteristics of Monopolies 3 5 Characteristics of a Monopoly 1. Single Seller One Firm controls the vast majority of a market The Firm IS the Industry 2. Unique

More information

COST OF PRODUCTION & THEORY OF THE FIRM

COST OF PRODUCTION & THEORY OF THE FIRM MICROECONOMICS: UNIT III COST OF PRODUCTION & THEORY OF THE FIRM One of the concepts mentioned in both Units I and II was and its components, total cost and total revenue. In this unit, costs and revenue

More information

Pricing with Market Power

Pricing with Market Power Chapter 7 Pricing with Market Power 7.1 Motives and objectives Broadly The model of perfect competition is extreme (and hence wonderfully powerful and simple) because of its assumption that each firm believes

More information

Problem Set 3 Eco 112, Spring 2011 Chapters covered: Ch. 6 and Ch. 7 Due date: March 3, 2011

Problem Set 3 Eco 112, Spring 2011 Chapters covered: Ch. 6 and Ch. 7 Due date: March 3, 2011 Problem Set 3 Eco 112, Spring 2011 Chapters covered: Ch. 6 and Ch. 7 Due date: March 3, 2011 There are 30 multiple choice questions in this problem set. Answer these questions by the beginning of the class

More information

Monopoly. PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University

Monopoly. PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 15 Monopoly PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 1 Market power Why Monopolies Arise Alters the relationship between a firm s costs and the selling price Monopoly

More information

Chapter 11. Monopoly. I think it s wrong that only one company makes the game Monopoly. Steven Wright

Chapter 11. Monopoly. I think it s wrong that only one company makes the game Monopoly. Steven Wright Chapter 11 Monopoly I think it s wrong that only one company makes the game Monopoly. Steven Wright Chapter 11 Outline 11.1 Monopoly Profit Maximization 11.2 Market Power 11.3 Welfare Effects of Monopoly

More information

a. Sells a product differentiated from that of its competitors d. produces at the minimum of average total cost in the long run

a. Sells a product differentiated from that of its competitors d. produces at the minimum of average total cost in the long run I. From Seminar Slides: 3, 4, 5, 6. 3. For each of the following characteristics, say whether it describes a perfectly competitive firm (PC), a monopolistically competitive firm (MC), both, or neither.

More information

Problem Set 4 Eco 112, Fall 2011 Chapters covered: Ch. 8 and Ch. 9 (up to slide 15 Price Discrimination) Due date: October 20, 2011

Problem Set 4 Eco 112, Fall 2011 Chapters covered: Ch. 8 and Ch. 9 (up to slide 15 Price Discrimination) Due date: October 20, 2011 Problem Set 4 Eco 112, Fall 2011 Chapters covered: Ch. 8 and Ch. 9 (up to slide 15 Price Discrimination) Due date: October 20, 2011 There are 30 multiple choice questions in this problem set. Answer these

More information

Unit 4: Imperfect Competition

Unit 4: Imperfect Competition Unit 4: Imperfect Competition 1 FOUR MARKET STRUCTURES Perfect Competition Monopolistic Competition Oligopoly Pure Monopoly Imperfect Competition Every product is sold in a market that can be considered

More information

Homework 4 Economics

Homework 4 Economics Homework 4 Economics 501.01 Manisha Goel Due: Tuesday, March 1, 011 (beginning of class). Draw and label all graphs clearly. Show all work. Explain. Question 1. Governments often regulate the price of

More information

11.1 Monopoly Profit Maximization

11.1 Monopoly Profit Maximization 11.1 Monopoly Profit Maximization CHAPTER 11 MONOPOLY A monopoly is the only supplier of a good for which there is no close substitute. Monopolies are not price takers like competitive firms Monopoly output

More information

ECON 251. Exam 1 Pink. Fall 2013

ECON 251. Exam 1 Pink. Fall 2013 ECON 251 1. By definition, opportunity cost is a. The value of the best alternative b. The sum of the value of all available alternatives c. The amount of money it takes to buy an item d. Always greater

More information

JANUARY EXAMINATIONS 2008

JANUARY EXAMINATIONS 2008 No. of Pages: (A) 9 No. of Questions: 38 EC1000A micro 2008 JANUARY EXAMINATIONS 2008 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates

More information

ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION

ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION Name Seat Assignment ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION November 17, 2009 FORM 3. Directions 1. FILL IN YOUR SCANTRON WITH YOUR UNIQUE ID AND THE FORM NUMBER LISTED ON THIS

More information

ECON 2100 Principles of Microeconomics (Summer 2016) Monopoly

ECON 2100 Principles of Microeconomics (Summer 2016) Monopoly ECON 21 Principles of Microeconomics (Summer 216) Monopoly Relevant readings from the textbook: Mankiw, Ch. 15 Monopoly Suggested problems from the textbook: Chapter 15 Questions for Review (Page 323):

More information

Commerce 295 Midterm Answers

Commerce 295 Midterm Answers Commerce 295 Midterm Answers October 27, 2010 PART I MULTIPLE CHOICE QUESTIONS Each question has one correct response. Please circle the letter in front of the correct response for each question. There

More information

ECON 2100 (Summer 2014 Sections 08 & 09) Exam #3D

ECON 2100 (Summer 2014 Sections 08 & 09) Exam #3D ECON 21 (Summer 214 Sections 8 & 9) Exam #3D Multiple Choice Questions: (3 points each) 1. I am taking of the exam. D. Version D 2. If a firm is currently operating at a point where costs of production

More information

Problem Set 1: Tariffs and Quotas Universidad Carlos III de Madrid Economics of European Integration

Problem Set 1: Tariffs and Quotas Universidad Carlos III de Madrid Economics of European Integration Problem Set 1: Tariffs and Quotas Universidad Carlos III de Madrid Economics of European Integration Problem 1. Suppose there are only two countries in the world (Home and Rest of the World) which produce

More information

ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION

ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION Name Seat Assignment ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION November 17, 2009 FORM 1. Directions 1. FILL IN YOUR SCANTRON WITH YOUR UNIQUE ID AND THE FORM NUMBER LISTED ON THIS

More information

EconS 301 Intermediate Microeconomics Review Session #9 Chapter 12: Capturing Surplus

EconS 301 Intermediate Microeconomics Review Session #9 Chapter 12: Capturing Surplus EconS 30 Intermediate Microeconomics Review Session #9 Chapter : Capturing Surplus. With second-degree price discrimination a) The firm tries to price each unit at the consumer s reservation price. b)

More information

Monopoly Behavior or Price Discrimination Chapter 25

Monopoly Behavior or Price Discrimination Chapter 25 Monopoly Behavior or Price Discrimination Chapter 25 monoply.gif (GIF Image, 289x289 pixels) http://i4.photobucket.com/albums/y144/alwayswondering1/monoply.gif?... Announcement Pre-midterm OH: Grossman

More information

Eco 300 Intermediate Micro

Eco 300 Intermediate Micro Eco 300 Intermediate Micro Instructor: Amalia Jerison Office Hours: T 12:00-1:00, Th 12:00-1:00, and by appointment BA 127A, aj4575@albany.edu A. Jerison (BA 127A) Eco 300 Spring 2010 1 / 61 Monopoly Market

More information

Micro Semester Review Name:

Micro Semester Review Name: Micro Semester Review Name: The following review is set up to emphasize certain concepts, graphs and terms. It is the responsibility of the individual teachers to emphasize and review the analysis aspects

More information

MONOPOLY SOLUTIONS TO TEXT PROBLEMS: Quick Quizzes

MONOPOLY SOLUTIONS TO TEXT PROBLEMS: Quick Quizzes 1 MONOPOLY SOLUTIONS TO TEXT PROBLEMS: Quick Quizzes 1. A market might have a monopoly because: (1) a key resource is owned by a single firm; (2) the government gives a single firm the exclusive right

More information

ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even Novermber 12, 2014 FORM 1 Directions 1. Fill in your scantron with your unique-id and the form number

More information

ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even Novermber 12, 2014 FORM 3 Directions 1. Fill in your scantron with your unique-id and the form number

More information

Chapter 13 MODELS OF MONOPOLY. Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Chapter 13 MODELS OF MONOPOLY. Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. Chapter 13 MODELS OF MONOPOLY Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 1 Monopoly A monopoly is a single supplier to a market This firm may choose to produce

More information

The Competitive Model in a More Realistic Setting

The Competitive Model in a More Realistic Setting CHAPTER 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting Chapter Summary and Learning Objectives 13.1 Demand and Marginal Revenue for a Firm in a Monopolistically Competitive

More information

Homework 2 Answer Key

Homework 2 Answer Key Econ 226 Principles of Microeconomics Fall, 24 Dr. Kathryn Wilson Due Date: Tuesday, September 28 th Homework 2 Answer Key 1. When the of movie admissions increases from $7 to $8, the demanded falls from

More information

Ecn Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman. Final Exam

Ecn Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman. Final Exam Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman Final Exam You have until 12:30pm to complete this exam. Be certain to put your name,

More information

Practice Midterm Exam Microeconomics: Professor Owen Zidar

Practice Midterm Exam Microeconomics: Professor Owen Zidar Practice Midterm Exam Microeconomics: 33001 Professor Owen Zidar This exam is comprised of 3 questions. The exam is scheduled for 1 hour and 30 minutes. This is a closed-book, closed-note exam. There is

More information

EC101 DD/EE Practice Final December 16/19, 2017 Version 09

EC101 DD/EE Practice Final December 16/19, 2017 Version 09 EC101 DD/EE Practice Final December 16/19, 2017 Version 09 Name (last, first): Student ID: U - - Discussion Section: Signature EC101 DD/EE Practice Final F17 INSTRUCTIONS (***Read Carefully***): ON YOUR

More information

Imperfect Competition (Monopoly) Chapters 15 Mankiw

Imperfect Competition (Monopoly) Chapters 15 Mankiw Imperfect Competition (Monopoly) Chapters 15 Mankiw What did we learn one week ago? Regulated prices Effect of a ceiling price Effect of a floor price. The cost of taxes and subsidies. Tax on producers

More information

Name: R Number: Roster #:

Name: R Number: Roster #: ECO 2305-002 ** TEST 2 ** Ibrahim Ozayturk Name: R Number: Roster #: Use the following to answer question 1: Figure: Consumer Surplus 1. (Figure: Consumer Surplus) In the figure, when the price falls from

More information

Title: Micro In the market below, what would be true at a price of $6?

Title: Micro In the market below, what would be true at a price of $6? Title: Micro 1.1 1. In the market below, what would be true at a price of $6? a. There is excess demand (a shortage) of 10 units. b. The market is in equilibrium. *c. There is excess supply (a surplus)

More information

Monopolistic Markets. Causes of Monopolies

Monopolistic Markets. Causes of Monopolies Monopolistic Markets Causes of Monopolies The causes of monopolization Monoplositic resources Only one firm owns a resource which is crucial for production (e.g. diamond monopol of DeBeers). Monopols created

More information

Econ 001: Midterm 2 (Dr. Stein) Answer Key Nov 13, 2007

Econ 001: Midterm 2 (Dr. Stein) Answer Key Nov 13, 2007 Instructions: Econ 001: Midterm 2 (Dr. Stein) Answer Key Nov 13, 2007 This is a 60-minute examination. Write all answers in the blue books provided. Show all work. Use diagrams where appropriate and label

More information

Sample. Final Exam Sample Instructor: Jin Luo

Sample. Final Exam Sample Instructor: Jin Luo Final Exam Instructor: Jin Luo Multiple Choice (2 *30 = 60) Identify the letter of the choice that best completes the statement or answers the question. 1. Price takers refer to buyers and sellers in a.

More information

ECON December 4, 2008 Exam 3

ECON December 4, 2008 Exam 3 Name Portion of ID# Multiple Choice: Identify the letter of the choice that best completes the statement or answers the question. 1. A fundamental source of monopoly market power arises from a. perfectly

More information

Eco201 Review questions for chapters Prof. Bill Even ====QUESTIONS FOR CHAPTER 13=============================

Eco201 Review questions for chapters Prof. Bill Even ====QUESTIONS FOR CHAPTER 13============================= Eco201 Review questions for chapters 13-15 Prof. Bill Even ====QUESTIONS FOR CHAPTER 13============================= 1) A monopoly has two key features, which are. A) barriers to entry and close substitutes

More information

ECON 115. Industrial Organization

ECON 115. Industrial Organization ECON 115 Industrial Organization 1. Linear (3rd Degree) Price Discrimination First Hour QUIZ Second Hour Introduction to Price Discrimination Third-degree price discrimination Two Rules Examples of price

More information

CHAPTER NINE MONOPOLY

CHAPTER NINE MONOPOLY CHAPTER NINE MONOPOLY This chapter examines how a market controlled by a single producer behaves. What price will a monopolist charge for his output? How much will he produce? The basic characteristics

More information

Industrial Organization

Industrial Organization Industrial Organization Session 4: The Monopoly Jiangli Dou School of Economics Jiangli Dou (School of Economics) Industrial Organization 1 / 43 Introduction In this session, we study a theory of a single

More information

ECO 162: MICROECONOMICS

ECO 162: MICROECONOMICS ECO 162: MICROECONOMICS PREPARED BY Dr. V.G.R. CHANDRAN Email: vgrchan@gmail.com Website: www.vgrchandran.com/default.html UNIVERSITI TEKNOLOGI MARA 0 P a g e TUTORIAL QUESTIONS ALL RIGHTS RESERVED 2010

More information

7 The Optimum of Monopoly, Price Discrimination

7 The Optimum of Monopoly, Price Discrimination Microeconomics I - Lecture #7, March 31, 2009 7 The Optimum of Monopoly, Price Discrimination 7.1 Monopoly Up to now we have analyzed the behavior of a competitive industry, a market structure that is

More information

Monopolistic Competition. Chapter 17

Monopolistic Competition. Chapter 17 Monopolistic Competition Chapter 17 The Four Types of Market Structure Number of Firms? Many firms One firm Few firms Differentiated products Type of Products? Identical products Monopoly Oligopoly Monopolistic

More information

Advanced Microeconomic Theory. Chapter 7: Monopoly

Advanced Microeconomic Theory. Chapter 7: Monopoly Advanced Microeconomic Theory Chapter 7: Monopoly Outline Barriers to Entry Profit Maximization under Monopoly Welfare Loss of Monopoly Multiplant Monopolist Price Discrimination Advertising in Monopoly

More information

Monopoly. 3 Microeconomics LESSON 5. Introduction and Description. Time Required. Materials

Monopoly. 3 Microeconomics LESSON 5. Introduction and Description. Time Required. Materials LESSON 5 Monopoly Introduction and Description Lesson 5 extends the theory of the firm to the model of a Students will see that the profit-maximization rules for the monopoly are the same as they were

More information

VIII 1 TOPIC VIII: MONOPOLY AND OTHER INDUSTRY STRUCTURES. I. Monopoly - Single Firm With No Threat of Close Competition. Other Industry Structures

VIII 1 TOPIC VIII: MONOPOLY AND OTHER INDUSTRY STRUCTURES. I. Monopoly - Single Firm With No Threat of Close Competition. Other Industry Structures TOPIC VIII: MONOPOLY AND OTHER INDUSTRY STRUCTURES I. Monopoly - Single Firm With No Threat of Close Competition II. Other Industry Structures CONCEPTS AND PRINCIPLES MONOPOLY We now consider the opposite

More information

14.03 Fall 2004 Problem Set 3

14.03 Fall 2004 Problem Set 3 14.03 Fall 2004 Problem Set 3 Professor: David Autor Due Friday, October 29, 2004 by 5pm 1 Sugarnomics Comment on the following quotes from articles in the reading list about the US sugar quota system.

More information

2. What is Taylor s marginal utility per dollar spent on the 2 nd race? a. 2 b. 3 c. 4 d. 5

2. What is Taylor s marginal utility per dollar spent on the 2 nd race? a. 2 b. 3 c. 4 d. 5 ECON 251 Practice questions based on Spring 2013 Exam 2 Taylor has $100 to spend on playing golf and running in races. The price of a round of golf is $20 and the price of running a race is $10. The total

More information

Exam 1. Pizzas. (per day) Figure 1

Exam 1. Pizzas. (per day) Figure 1 ECONOMICS 10-008 Dr. John Stewart Sept. 30, 2003 Exam 1 Instructions: Mark the letter for your chosen answer for each question on the computer readable answer sheet using a No.2 pencil. Note a)=1, b)=2

More information

AP Microeconomics. Sample Student Responses and Scoring Commentary. Inside: Free Response Question 3. Scoring Guideline.

AP Microeconomics. Sample Student Responses and Scoring Commentary. Inside: Free Response Question 3. Scoring Guideline. 2017 AP Microeconomics Sample Student Responses and Scoring Commentary Inside: Free Response Question 3 Scoring Guideline Student Samples Scoring Commentary 2017 The College Board. College Board, Advanced

More information

Gregory Clark Econ 1A, Winter 2012 SAMPLE FINAL

Gregory Clark Econ 1A, Winter 2012 SAMPLE FINAL Gregory Clark Econ 1A, Winter 2012 SAMPLE FINAL 1. Medical doctors in the USA earn very high incomes compared to some other countries such as Canada. Label each of the following with N for NORMATIVE, or

More information

Welker s Wikinomics practice activities. Unit 1.5 Theory of the Firm Pure Monopoly

Welker s Wikinomics practice activities. Unit 1.5 Theory of the Firm Pure Monopoly Unit 1.5 Theory of the Firm Pure Monopoly 1. Assume that Welcorp is a purely monopolistic publisher of Economics textbooks. All econ texts available are published by the firm. The table below shows the

More information

Charpter 10 explores how firms can have more sophisticated behavior to extract surplus from consumers and maximize surplus.

Charpter 10 explores how firms can have more sophisticated behavior to extract surplus from consumers and maximize surplus. Introduction to Industrial Organization Professor: Caixia Shen Fall 2014 Lecture Note 11 Price discrimination (ch 10) Charpter 10 explores how firms can have more sophisticated behavior to extract surplus

More information

Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied $ $ $ $ $10 2 8

Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied $ $ $ $ $10 2 8 Econ 101 Summer 2005 In class Assignment 2 Please select the correct answer from the ones given Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied $ 2 18 3 $ 4 14 4 $ 6 10 5 $ 8 6 6 $10 2 8

More information

ECON 251 Exam 1 Pink Spring 2012

ECON 251 Exam 1 Pink Spring 2012 ECON 251 Exam 1 Pink Spring 2012 1. Which of the following is an example of the economic resource of capital? a. A $20 bill b. A corporate bond c. a government savings bond d. none of the above 2. John

More information

Practice Exam 3: S201 Walker Fall with answers to MC

Practice Exam 3: S201 Walker Fall with answers to MC Practice Exam 3: S201 Walker Fall 2007 - with answers to MC Print Your Name: I. Multiple Choice (3 points each) 1. If marginal utility is falling then A. total utility must be falling. B. marginal utility

More information

MICROECONOMICS SECTION I. Time - 70 minutes 60 Questions

MICROECONOMICS SECTION I. Time - 70 minutes 60 Questions MICROECONOMICS SECTION I Time - 70 minutes 60 Questions Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Micro - HW 4 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In central Florida during the spring, strawberry growers are price takers. The reason

More information

1. Fill in the missing blanks ( XXXXXXXXXXX means that there is nothing to fill in this spot):

1. Fill in the missing blanks ( XXXXXXXXXXX means that there is nothing to fill in this spot): 1. Fill in the missing blanks ( XXXXXXXXXXX means that there is nothing to fill in this spot): Quantity Total utility Marginal utility 0 0 XXXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXX 200 0 = 200 1 200 XXXXXXXXXXX

More information

Economics 101 Midterm Exam #2. April 9, Instructions

Economics 101 Midterm Exam #2. April 9, Instructions Economics 101 Spring 2009 Professor Wallace Economics 101 Midterm Exam #2 April 9, 2009 Instructions Do not open the exam until you are instructed to begin. You will need a #2 lead pencil. If you do not

More information

EC101 DD/EE Midterm 2 November 7, 2017 Version 01

EC101 DD/EE Midterm 2 November 7, 2017 Version 01 EC101 DD/EE Midterm 2 November 7, 2017 Version 01 Name (last, first): Student ID: U Discussion Section: Signature EC101 DD/EE F17 Midterm 2 INSTRUCTIONS (***Read Carefully***): ON YOUR QUESTION BOOKLET:

More information

SCHOOL OF ECONOMICS AND FINANCE THE UNIVERSITY OF HONG KONG ECON6021 MICROECONOMICS PROBLEM SET NO.3 COMPETITIVE MARKETS AND MONOPOLY

SCHOOL OF ECONOMICS AND FINANCE THE UNIVERSITY OF HONG KONG ECON6021 MICROECONOMICS PROBLEM SET NO.3 COMPETITIVE MARKETS AND MONOPOLY SCHOOL OF ECONOMICS AND FINANCE THE UNIVERSITY OF HONG KONG ECON60 MICROECONOMICS PROBLEM SET NO.3 COMPETITIVE MARKETS AND MONOPOLY This problem set contains short-answer (true, false, uncertain) problems

More information

UNIVERSITY OF VICTORIA EXAMINATIONS APRIL 2006 ECON 103

UNIVERSITY OF VICTORIA EXAMINATIONS APRIL 2006 ECON 103 UNIVERSITY OF VICTORIA EXAMINATIONS APRIL 2006 ECON 103 NAME: INSTRUCTOR: STUDENT NO: SECTION: DURATION: TWO (2) HOURS TO BE ANSWERED ON THE PAPER AND ON N.C.S. ANSWER SHEETS STUDENTS MUST COUNT THE NUMBER

More information

Introduction. Learning Objectives. Learning Objectives. Economics Today Twelfth Edition. Chapter 24 Monopoly

Introduction. Learning Objectives. Learning Objectives. Economics Today Twelfth Edition. Chapter 24 Monopoly Roger LeRoy Miller Economics Today Twelfth Edition Chapter 24 Monopoly Introduction The cement market in Mexico is dominated by a single company that accounts for more than 70 percent of all sales. Why

More information

Econ 200: Lecture 6 October 14, 2014

Econ 200: Lecture 6 October 14, 2014 Econ 200: Lecture 6 October 14, 2014 0. Learning Catalytics Session: 47811348 1. Economic Efficiency 2. Price Ceilings and Floors and Efficiency 3. Start Taxes (if time) Reminder: Article Response Writing

More information

Chapter Summary and Learning Objectives

Chapter Summary and Learning Objectives CHAPTER 11 Firms in Perfectly Competitive Markets Chapter Summary and Learning Objectives 11.1 Perfectly Competitive Markets (pages 369 371) Explain what a perfectly competitive market is and why a perfect

More information

2003/2004 FIRST EXAM 103BE/BX/BF Microeconomics, Closed part

2003/2004 FIRST EXAM 103BE/BX/BF Microeconomics, Closed part 1 2003/2004 FIRST EXAM 103BE/BX/BF Microeconomics, Closed part Note 1: Always read all the options before choosing one, and then select the best option. Sometimes the final option may read like all the

More information

EC101 DD/EE Practice Final December 17/20, 2016 Version 09

EC101 DD/EE Practice Final December 17/20, 2016 Version 09 EC101 DD/EE Practice Final December 17/20, 2016 Version 09 Name (last, first): Student ID: U - - Discussion Section: Signature EC101 DD/EE Practice Final F16 INSTRUCTIONS (***Read Carefully***): ON YOUR

More information

3. At the price of $60 each, sellers offer and buyers wish to purchase pairs of jeans a day. A. 60; 20 B. 8; 24 C. 16; 16 D. 24; 8

3. At the price of $60 each, sellers offer and buyers wish to purchase pairs of jeans a day. A. 60; 20 B. 8; 24 C. 16; 16 D. 24; 8 EC201 Exam II Review 1. Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, ticket prices are $60. Ingrid's reservation price is $75. But when Ingrid tries to

More information