# Boston College Problem Set 6, Fall 2012 EC Principles of Microeconomics Instructor: Inacio G L Bo

Size: px
Start display at page:

Download "Boston College Problem Set 6, Fall 2012 EC Principles of Microeconomics Instructor: Inacio G L Bo"

Transcription

1 Problem Set 6, Fall 01 EC Principles of Microeconomics Instructor: Inacio G L Bo Answer the questions in the spaces provided on the question sheets. If you run out of room for an answer, continue on the back of the page. Be succinct. Longer answers don t increase your chance of being right, but increase your chance of saying something wrong. Show how you got your answers in mathematical questions Name: 1. Say whether the propositions are True or False. If they are False, justify. (a) The fundamental cause of monopolies is barriers to entry. True. (b) Like competitive firms, monopolists charge a price equal to marginal cost. False. Monopolists charge a price higher than marginal cost. (c) When a firm operates with excess capacity, it must be in a monopolistically competitive market. False. In a perfectly competitive market firms may be operating with excess capacity in the short-run, and firms in monopolistic markets may also operate in excess capacity in the short or long-run. Page 1 of?? Please go on to the next page...

2 Problem Set 6, Fall 01. Suppose that you are a monopolist in the market of a specific video game. Your inverse demand curve and cost function are the followung: P = 80 Q C(Q) = Q (a) Derive the Marginal Cost (MC) and the Marginal Revenue (MR) functions T R = P Q = (80 Q Q )Q = 80Q MR = dt R dq = 80 Q MC = dc(q) dq = Q (b) Plot a graph with the demand curve, the marginal revenue curve and the marginal cost curves. Label carefully all intercepts of all curves and indicate them with the labels D,MR and MC, respectively. (c) Derive the equilibrium price and quantity for that monopolist problem. Profit maximization implies MR = MC: 80 Q = Q Q = 40 To get the price, we go back to the demand curve: (d) What is your profit? P = = 60 Page of?? Please go on to the next page...

3 Problem Set 6, Fall 01 Profit is total revenue minus total cost: profit = T R T C = Since P = 60 and Q = 40: = P Q 400 Q profit = = \$1, 00 Page 3 of?? Please go on to the next page...

4 Problem Set 6, Fall 01 (e) Plot the graph with the demand, MC and MR curves again and indicate the consumer surplus (CS), producer surplus (PS) and deadweight loss (DWL). (f) Calculate the values of the consumer surplus (CS), the producer surplus (PS) and the deadweight loss (DWL). We need to find two values: the cost when MR = MC and the quantity when MC = D. MR = MC = 80 Q = Q = Q = 40 MC = D = Q = 80 Q DW L = P S = CS = (80 60) 40 0 ( ) = Q = = \$400 = \$ = \$1, 600 Page 4 of?? Please go on to the next page...

5 Problem Set 6, Fall Consider the four graphs below and answer the items that follow. In all items, your answer may be that more than one or none of the graphs satisfies the question. Justify your answer in all items. (a) Which of the graphs shown would be consistent with a profit maximizing firm in a monopolistically competitive market that is earning a positive profit? The correct answer is Graph (c). In graph (a) the firm s choice is such that P = MC, whereas in monopolistically competitive markets P > MC. In graph (b), the firm is maximizing profit (MR = MC), but at that point P < AT C. The firm is, thus, losing money (or having a negative profit). In graph (c), the firm is maximizing profit (MR = MC), and at that point P > AT C. The firm is, thus, having a positive profit. In graph (d), demand is perfectly elastic, which is consistent with a firm in a perfectly competitive market. Page 5 of?? Please go on to the next page...

6 Problem Set 6, Fall 01 (b) Which of the graphs shown would be consistent with a firm in a monopolistically competitive market that is doing its best but still losing money? The correct answer is Graph (b), as justified above. (c) Which of the graphs depicts a monopolistically competitive firm in long-run equilibrium? None of the graphics above depicts such situation. In the long-run equilibrium the demand curve must be tangent to the ATC curve, and the quantity produced must be at that tangent point. Page 6 of?? Please go on to the next page...

### Boston College Problem Set 3, Fall 2012 EC Principles of Microeconomics Instructor: Inacio G L Bo

EC 131 - Principles of Microeconomics Instructor: Inacio G L Bo Answer the questions in the spaces provided on the question sheets. If you run out of room for an answer, continue on the back of the page.

### ECON 101: Principles of Microeconomics Discussion Section Week 12 TA: Kanit Kuevibulvanich

Important Concepts: Monopoly ECON 101: Principles of Microeconomics Discussion Section Week 12 Comparison of Perfectly Competitive Market and Monopoly Market Perfect Competition Monopoly Number of Participants

### ECON 102 Brown Final Exam Practice Exam Solutions

www.liontutors.com ECON 102 Brown Final Exam Practice Exam Solutions 1. B 2. C 3. C All products are identical (homogenous) in perfect competition so there is no such thing as brand preference. 4. C Breakeven

### 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

### Quiz #5 Week 04/12/2009 to 04/18/2009

Quiz #5 Week 04/12/2009 to 04/18/2009 You have 30 minutes to answer the following 17 multiple choice questions. Record your answers in the bubble sheet. Your grade in this quiz will count for 1% of your

### 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):

### ECON 200. Introduction to Microeconomics

ECON 200. Introduction to Microeconomics Homework 5 Part II Name: [Multiple Choice] 1. A firm is a natural monopoly if it exhibits the following as its output increases: (d) a. decreasing marginal revenue

### Model: Nonmarginal Pricing

Model: Nonmarginal Pricing Today in class, we will examine a model of one type of distorted market: nonmarginal pricing. This variation of the basic model represents a pattern common to many resource-related

### c) Will the monopolist described in (b) earn positive, negative, or zero economic profits? Explain your answer.

Economics 101 Summer 2015 Answers to Homework #4b Due Tuesday June 16, 2015 Directions: The homework will be collected in a box before the lecture. Please place your name, TA name and section number on

### Ecn Intermediate Microeconomic Theory University of California - Davis December 10, 2008 Professor John Parman.

Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 2008 Professor John Parman Final Examination You have until 12:30pm to complete the exam, be certain to use your

### Econ 001: Midterm 2 (Dr. Stein) Answer Key March 23, 2011

Instructions: Econ 001: Midterm 2 (Dr. Stein) Answer Key March 23, 2011 This is a 60-minute examination. Write all answers in the blue books provided. Show all work. Use diagrams where appropriate and

### Ecn Intermediate Microeconomic Theory University of California - Davis March 19, 2009 Instructor: John Parman. Final Exam

Ecn 100 - Intermediate Microeconomic Theory University of California - Davis March 19, 2009 Instructor: John Parman Final Exam You have until 5:30pm to complete the exam, be certain to use your time wisely.

### Lecture 10: Market Power and Monopoly

Lecture 10: Market Power and Monopoly November 8, 2016 Overview Course Administration Sources of Market Power Market Power and Marginal Revenue Profit Maximization and Market Power How a Firm With Market

### MIDTERM #2. The following defini;ons may be used throughout the exam:

Page 1 of 12 NAME: EC 131 - Principles of Microeconomics Fall 2012 MIDTERM #2 All ques@ons should be answered in the following pages. Nothing here requires a very long answer. Graphs many ;mes help, as

### 2007 Thomson South-Western

Monopolistic Competition Characteristics: Many sellers Product differentiation Free entry and exit In the long run, profits are driven to zero Firms have some control over price What does the costs graph

### Market Power at Work: Computer Market Revisited

Monopolies Part II Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity. Nancy Pearcey Market Power at Work: Computer Market

### Economics 323 Microeconomic Theory Fall 2016

green=b SECOND EXAM Chapter Ten Economics 323 Microeconomic Theory Fall 2016 1. The markets for many come close to satisfying the conditions required for perfect competition. a. agricultural goods b. transportation

### Lecture 11: Market Power and Monopoly

Lecture 11: Market Power and Monopoly November 13, 2018 Overview Course Administration Sources of Market Power Market Power and Marginal Revenue Profit Maximization and Market Power How a Firm With Market

### Chapter 13. Microeconomics. Monopolistic Competition: The Competitive Model in a More Realistic Setting

Microeconomics Modified by: Yun Wang Florida International University Spring, 2018 1 Chapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting Chapter Outline 13.1 Demand and

### If the industry s short-run supply curve equals the horizontal sum of individual firms short-run supply curves, which of the following may we infer?

Microeconomics, Module 8: Competition: Long Run (Chapter 7) Illustrative Test Questions (The attached PDF file has better formatting.) Question 8.1: Long Run Equilibrium When is a competitive profit-maximizing

### Ecn Intermediate Microeconomic Theory University of California - Davis December 10, 2008 Professor John Parman.

Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 2008 Professor John Parman Final Examination You have until 12:30pm to complete the exam, be certain to use your

### Unit 13 AP Economics - Practice

DO NOT WRITE ON THIS TEST! Unit 13 AP Economics - Practice Multiple Choice Identify the choice that best completes the statement or answers the question. 1. A natural monopoly exists whenever a single

### Lecture 11: Market Power and Monopoly

Lecture 11: Market Power and Monopoly November 14, 2017 Overview Course Administration Sources of Market Power Market Power and Marginal Revenue Profit Maximization and Market Power How a Firm With Market

### Chapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting

Economics 6 th edition 1 Chapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting Modified by Yulin Hou For Principles of Microeconomics Florida International University Fall

### 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

### ECON 102 Wooten Final Exam Practice Exam Solutions

www.liontutors.com ECON 102 Wooten Final Exam Practice Exam Solutions 1. A monopolist will increase price and decrease quantity to maximize profits when compared to perfect competition because a monopolist

### 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

### AP Microeconomics Review Session #3 Key Terms & Concepts

The Firm, Profit, and the Costs of Production 1. Explicit vs. implicit costs 2. Short-run vs. long-run decisions 3. Fixed inputs vs. variable inputs 4. Short-run production measures: be able to calculate/graph

### 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

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

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

### 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

### EconS Perfect Competition and Monopoly

EconS 425 - Perfect Competition and Monopoly Eric Dunaway Washington State University eric.dunaway@wsu.edu Industrial Organization Eric Dunaway (WSU) EconS 425 Industrial Organization 1 / 47 Introduction

### Do not remove any pages or add any pages. No additional paper is supplied

ECON 001 Spring 2018 Midterm 2 March 27, 2018 Time Limit: 60 Minutes Name (Print): Recitation Section: Name of TA: This exam contains 5 pages (including this cover page) and 10 questions. Check to see

### ECON 102 Kagundu Final Exam (New Material) Practice Exam Solutions

www.liontutors.com ECON 102 Kagundu Final Exam (New Material) Practice Exam Solutions 1. A A large number of firms will be able to operate in the industry because you only need to produce a small amount

### Assessment Schedule 2016 Economics: Demonstrate understanding of the efficiency of different market structures using marginal analysis (91400)

NCEA Level 3 Economics (91400) 2016 page 1 of 11 Assessment Schedule 2016 Economics: Demonstrate understanding of the efficiency of different market structures using marginal analysis (91400) Assessment

### These notes essentially correspond to chapter 11 of the text.

These notes essentially correspond to chapter 11 of the text. 1 Monopoly A monopolist is de ned as a single seller of a well-de ned product for which there are no close substitutes. In reality, there are

### 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

### 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,

### Practice Exam 3: S201 Walker Fall 2009

Practice Exam 3: S201 Walker Fall 2009 I. Multiple Choice (3 points each) 1. Which of the following statements about the short-run is false? A. The marginal product of labor may increase or decrease. B.

### 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.

### Final Exam - Solutions

Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 009 Instructor: John Parman Final Exam - Solutions You have until 1:30pm to complete this exam. Be certain to put

### Eastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester

Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2014 15 Fall Semester ECON101 Introduction to Economics I Final Exam Type A 26 January 2015 Duration: 100 minutes

### 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

### Econ 001, Spring '12, Levinson

Page 1 of 7 Print this page. Econ 001, Spring '12, Levinson Problem Set 7 Monopolies, game theory. Instructor Description: Tests understanding of monopoly, especially profit maximization. Includes graphical

### Monopoly and How It Arises

13 MONOPOLY Monopoly and How It Arises A monopoly is a market: That produces a good or service for which no close substitute exists If a good has a close substitute, even if it is produced by only one

### Unit 6 Perfect Competition and Monopoly - Practice Problems

Unit 6 Perfect Competition and Monopoly - Practice Problems Multiple Choice Identify the choice that best completes the statement or answers the question. 1. One characteristic of a perfectly competitive

### a) I, II and III. b) I c) II and III only. d) I and III only. 2. Refer to the PPF diagram below. PPF

1. Suppose that - at a given level of an economic activity - marginal social cost is greater than marginal social benefit. Which of the following statements is TRUE? I. Social surplus would be higher at

### Eastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester

Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2016-17 Fall Semester Duration: 110 minutes ECON101 - Introduction to Economics I Final Exam Type A 11 January

### ECON 101 KONG Midterm 2 CMP Review Session. Presented by Benji Huang

ECON 101 KONG Midterm 2 CMP Review Session Presented by Benji Huang Chapter 5 Efficiency and Equity Benefit, Cost, Surplus Consumers (1) A consumer benefits from the consumption of a product this benefit

### I enjoy teaching this class. Good luck and have a nice Holiday!!

ECON 202-501 Fall 2008 Xiaoyong Cao Final Exam Form A Instructions: The exam consists of 2 parts. Part I has 35 multiple choice problems. You need to fill the answers in the table given in Part II of the

### Practice Exam for Section III Material

Practice Exam for Section III Material 1) If a monopolist s demand curve has slope - δ, then its marginal revenue curve has slope δ/2. 2) A market with 10 firms must have a lower HHI than a firm composed

### Principles of Microeconomics Assignment 8 (Chapter 10) Answer Sheet. Class Day/Time

1 Principles of Microeconomics Assignment 8 (Chapter 10) Answer Sheet Name Class Day/Time Questions of this homework are in the next few pages. Please find the answer of the questions and fill in the blanks

### short run long run short run consumer surplus producer surplus marginal revenue

Test 3 Econ 3144 Name Fall 2005 Dr. Rupp 20 Multiple Choice Questions (50 points) & 4 Discussion (50 points) Signature I have neither given nor received aid on this exam Use this table to answer questions

### Ecn Intermediate Microeconomic Theory University of California - Davis June 11, 2009 Instructor: John Parman. Final Exam

Ecn 100 - Intermediate Microeconomic Theory University of California - Davis June 11, 2009 Instructor: John Parman Final Exam You have until 8pm to complete the exam, be certain to use your time wisely.

### CH 15: Monopoly. Lecture

CH 15: Monopoly Lecture Characteristics of Monopolies A monopoly is a market structure in which one firm makes up the entire market Firm=Industry Characteristics of Monopolies The monopolist is a price

### 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

### 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

### Question 1 A. In order to find optimal level of consumption and utility, we set MRS=MRT. These are found by:

Question 1 A. In order to find optimal level of consumption and utility, we set MRS=MRT. These are found by: With x isolated, we now insert to budget constraint: Therefore, optimal consumption is: x=100,

### Lecture 11. Firms in competitive markets

Lecture 11 Firms in competitive markets By the end of this lecture, you should understand: what characteristics make a market competitive how competitive firms decide how much output to produce how competitive

### This exam contains 11 pages (including this cover page) and 12 questions.

ECON 001 Fall 2015 A. Duchene Midterm 2 November 4, 2015 Time Limit: 0 Minutes Name (Print): Recitation Section: Name of TA: Read these instructions carefully: This exam contains 11 pages (including this

### 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

### Lecture 22. Oligopoly & Monopolistic Competition

Lecture 22. Oligopoly & Monopolistic Competition Course Evaluations on Thursday: Be sure to bring laptop, smartphone, or tablet with browser, so that you can complete your evaluation in class. Oligopoly

### MIDTERM RECAP TUTORIAL TA Andrea Venegoni

MIDTERM RECAP TUTORIAL TA Andrea Venegoni 1- Monopoly A monopolist has the following cost function and faces the following demand curve for its products: C(Q) = 20Q Demand : P = 100 Q 1. Explain why in

### Market Structure & Imperfect Competition

In the Name of God Sharif University of Technology Graduate School of Management and Economics Microeconomics (for MBA students) 44111 (1393-94 1 st term) - Group 2 Dr. S. Farshad Fatemi Market Structure

### Model: Price Ceilings

Model: Price Ceilings Today, we will examine a model of price ceilings, one type of market distortion. This model reflects a pattern of policy used in response to unpopular fluctuations in the prices of

### 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

### Practice Exam 3: S201 Walker Fall 2004

Practice Exam 3: S201 Walker Fall 2004 I. Multiple Choice (3 points each) 1. Which of the following statements about the short-run is false? A. The marginal product of labor may increase or decrease. B.

### ECON 102 Brown Final Exam (New Material) Practice Exam Solutions

www.liontutors.com ECON 102 Brown Final Exam (New Material) Practice Exam Solutions 1. B A very large percent of their earnings comes from economic rent 2. B Any funds left, after everyone who has a claim

### 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

### Unit 8: Imperfect Competition II oligopoly and monopolistic competition

Unit 8: Imperfect Competition II oligopoly and monopolistic competition Prof. Antonio Rangel 1 Oligopoly Oligopoly: more than one firm, but not enough for perfect competition Firms have some market power

### ECON 4550 (Fall 2011) Exam 1

ECON 455 (Fall 211) Exam 1 Name Multiple Choice Questions: (4 points each) 1. Jimmy is risk neutral. He is faced with a random payoff with expected value of \$2,. Further, for this payoff the highest possible

### The homework is due on Wednesday, December 7 at 4pm. Each question is worth 0.8 points.

Homework 9: Econ500 Fall, 2016 The homework is due on Wednesday, December 7 at 4pm. Each question is worth 0.8 points. Question 1 Suppose that all firms in a competitive industry have cost function c(q)=

### 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

### sample test 3 - spring 2013

sample test 3 - spring 2013 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. A natural monopoly occurs when a. the product is sold in its

### 1. Why is utility subjective? 2. What are inferior options? 3. Suppose the price of A is 1, the price of B is 2 and the price of C is 1.

Study Questions for Chapters 7-11 Chapter 7 1. Why is utility subjective? 2. What are inferior options? 3. Suppose the price of A is 1, the price of B is 2 and the price of C is 1.50 a. Complete the following

### 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

### 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

### Test 3 Econ 3144 Fall 2010 Dr. Rupp 31 Multiple Choice Questions Signature I have neither given nor received aid on this exam

Test 3 Econ 3144 Name Fall 2010 Dr. Rupp 31 Multiple Choice Questions Signature I have neither given nor received aid on this exam Use the following information to answer questions 1-4. A DVD making monopolist

### Monopoly CHAPTER 15. Henry Demarest Lloyd. Monopoly is business at the end of its journey. Monopoly 15. McGraw-Hill/Irwin

CHAPTER 15 Monopoly Monopoly is business at the end of its journey. Henry Demarest Lloyd McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved. A Monopolistic Market A

### Microeconomics. Basic Information

Microeconomics Basic Information Title: Microeconomics Code: ECN101 Credit Hours: 3 C.H. Prerequisite(s): None Classification: Compulsory Faculty Core Course Description Microeconomics is a basic core

### Final Exam - Solutions

Ecn 100 - Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman Final Exam - Solutions You have until 12:30 to complete this exam. Be certain to put your

### Final Exam - Solutions

Ecn 100 - Intermediate Microeconomics University of California - Davis June 8, 2010 Instructor: John Parman Final Exam - Solutions You have until 10:00am to complete this exam. Be certain to put your name,

### MARKETS. Part Review. Reading Between the Lines SONY CORP. HAS CUT THE U.S. PRICE OF ITS PLAYSTATION 2

Part Review 4 FIRMS AND MARKETS Reading Between the Lines SONY CORP. HAS CUT THE U.S. PRICE OF ITS PLAYSTATION 2 On May 14, 2002 Sony announced it was cutting the cost of its PlayStation 2 by 33 percent,

### ECON 2100 (Summer 2012 Sections 07 and 08) Exam #3C Answer Key

ECON 21 (Summer 212 Sections 7 and 8) Exam #3C Answer Key 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

### Principles of Microeconomics Module 5.1. Understanding Profit

Principles of Microeconomics Module 5.1 Understanding Profit 180 Production Choices of Firms All firms have one goal in mind: MAX PROFITS PROFITS = TOTAL REVENUE TOTAL COST Two ways to reach this goal:

### ECN 3103 INDUSTRIAL ORGANISATION

ECN 3103 INDUSTRIAL ORGANISATION 3. Monopoly Mr. Sydney Armstrong Lecturer 1 The University of Guyana 1 Semester 1, 2016 OUR PLAN Monopoly Reference for reviewing these concepts: Carlton, Perloff, Modern

### All but which of the following are true in the long-run for a competitive firm that maximizes profits?

Microeconomics, Module 11: Monopoly (Chapter 10) Illustrative Test Questions (The attached PDF file has better formatting.) Question 11.1: Profit Maximization: Monopoly Which of the following is true in

### Marginal willingness to pay (WTP). The maximum amount a consumer will spend for an extra unit of the good.

McPeak Lecture 10 PAI 723 The competitive model. Marginal willingness to pay (WTP). The maximum amount a consumer will spend for an extra unit of the good. As we derived a demand curve for an individual

### 9.1 Zero Profit for Competitive Firms in the Long Run

9.1 Zero Profit for Competitive Firms in the Long Run Chapter 9 Applications of the Competitive Model With Free Entry into the Market Along with identical costs and constant input prices, implies firms

### a. Graph the demand curve in figure 1. Page 1 Practice Homework Elasticity Economics 101 The Economic Way of Thinking

Price Practice Homework ity Economics 101 The Economic Way of Thinking 1. The table below shows demand data for fountain soft drinks. Columns 4 and 5 show the average percent change in price and quantity

### PBAF 516 YA Prof. Mark Long Practice Midterm 2 Questions

PBAF 516 YA Prof. Mark Long Practice Midterm 2 Questions Note: these 9 questions were drawn from questions that I have given in prior years (in a similar class). These questions should not be considered

### Quiz #4 Week 04/05/2009 to 04/11/2009

Quiz #4 Week 04/05/2009 to 04/11/2009 You have 30 minutes to answer the following 15 multiple choice questions. Record your answers in the bubble sheet. Your grade in this quiz will count for 1% of your

### Microeconomics, IB and IBP

Page 1 of Microeconomics, IB and IBP RE-TAKE EXAM, January 010 Open book, 4 hours Question 1 Suppose that the market demand function for corn is Q d =15 P while the market supply function for corn is Q

### ECON 251 Exam 2 Pink. Fall 2012

ECON 251 Exam 2 Pink Use the table below to answer the following four questions The table below shows Harry s total utility from consuming beer and wine. The price of beer is \$2 per bottle. The price of

### Prof. Wolfram Elsner Faculty of Business Studies and Economics iino Institute of Institutional and Innovation Economics. Real-World Markets

Prof. Wolfram Elsner Faculty of Business Studies and Economics iino Institute of Institutional and Innovation Economics Real-World Markets Readings for this lecture Required reading this time: Real-World

### ECONOMICS SOLUTION BOOK 2ND PUC. Unit 6. I. Choose the correct answer (each question carries 1 mark)

Unit 6 I. Choose the correct answer (each question carries 1 mark) 1. A market structure which produces heterogenous products is called: a) Monopoly b) Monopolistic competition c) Perfect competition d)

### 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