Econ B 251 Final Exam Questions with
100% Correct Answers | Verified | Latest
Update
Quantityi(iPizzasiperiday)
0
1i
2
3
4
5
Pricei(dollarsiperipizzas)
$20
18
16
14
12
10
Theitableiaboveishowsitheidemandiforiaimonopolist'sioutput.iTheimargi
nalirevenueiofiincreasingiproductionifromi3itoi4iunitsiisi$i-
iCorrectiAnswer-6
,Quantityi(iPizzasiperiday)
0
1i
2
3
4
5
Pricei(dollarsiperipizzas)
$20
18
16
14
12
10
Theitableiaboveishowsitheidemandiforiaimonopolistsioutput.iiFitheipizze
riaiisiaisingle-
priceimonopolyianditheimarginalicostiofiaipizzaiisi$6,ithenitheifirmsiprofi
timaximizingioutputiisi---
ipizzas.iAtithatiamountitheifirmichargesiaipriceiofi$---
iandiitsitotalirevenueiisi$---i-iCorrectiAnswer-4,i12,i48
Joe,iaihairidresser,ioffersistudentsiaidiscountipriceionihaircuts.iThisiformi
ofipricingiisianiexampleiofi-iCorrectiAnswer-priceidiscrimination
,Theimoreiperfectlyiaimonopolyicanipriceidiscriminate,ithei---
iitsioutputiandithei---iitsiprofit.i-iCorrectiAnswer-larger,ilarger
compareditoiaisimilariperfectlyicompetitiveiindustry,iaisingle-
priceimonopolyidecreasesiconsumerisurplusiandidecreasesieconomicief
ficiency.i-iCorrectiAnswer-Decreases,idecreases
Rentiseekingibyiaimonopolisti---itheisocialicostiofiaimonopolyiandi---iitsi--
-i-iCorrectiAnswer-increases,icost,iincreases,iaverageitotalicost
Whichiofitheifollowingiareicharacteristicsiofiperfecticompetition?i-
iCorrectiAnswer-
manyisellers,ithereiareinoibarriersitoientryioriexit,itheimarketidemandic
urveiisidownwardisloping
TheidemandiforicornifromiHoosierifarmiisiperfectlyielasticibecauseicorni
fromiHoosierifarmsiisi-iCorrectiAnswer-
aiperfectisubstituteiforicornifromiotherifarms
theiprofitimaximizingileveliofioutputiforitheiperfectlyicompetitiveifirmio
ccursiwherei-iCorrectiAnswer-pricei=imarginalicost
Quantityi(Pizzasiforiday)
0
1
, 2
3
4
5
Totalicosti(dollars)
$20
25
35
50
70
95
Theiaboveitableishowsitheitotalicostiofiproducingipizzas.iTheimarketifori
pizzasiisiperfectlyicompetitive.iTheiequilibriumimarketipriceiofiaipizzaiisi
$18.iGivenithisiinformationitheiprofitimaximizingioutputiisi---ipizzasi-
iCorrectiAnswer-3
Quantityi(Pizzasiforiday)
0
1
2
3
4
5
100% Correct Answers | Verified | Latest
Update
Quantityi(iPizzasiperiday)
0
1i
2
3
4
5
Pricei(dollarsiperipizzas)
$20
18
16
14
12
10
Theitableiaboveishowsitheidemandiforiaimonopolist'sioutput.iTheimargi
nalirevenueiofiincreasingiproductionifromi3itoi4iunitsiisi$i-
iCorrectiAnswer-6
,Quantityi(iPizzasiperiday)
0
1i
2
3
4
5
Pricei(dollarsiperipizzas)
$20
18
16
14
12
10
Theitableiaboveishowsitheidemandiforiaimonopolistsioutput.iiFitheipizze
riaiisiaisingle-
priceimonopolyianditheimarginalicostiofiaipizzaiisi$6,ithenitheifirmsiprofi
timaximizingioutputiisi---
ipizzas.iAtithatiamountitheifirmichargesiaipriceiofi$---
iandiitsitotalirevenueiisi$---i-iCorrectiAnswer-4,i12,i48
Joe,iaihairidresser,ioffersistudentsiaidiscountipriceionihaircuts.iThisiformi
ofipricingiisianiexampleiofi-iCorrectiAnswer-priceidiscrimination
,Theimoreiperfectlyiaimonopolyicanipriceidiscriminate,ithei---
iitsioutputiandithei---iitsiprofit.i-iCorrectiAnswer-larger,ilarger
compareditoiaisimilariperfectlyicompetitiveiindustry,iaisingle-
priceimonopolyidecreasesiconsumerisurplusiandidecreasesieconomicief
ficiency.i-iCorrectiAnswer-Decreases,idecreases
Rentiseekingibyiaimonopolisti---itheisocialicostiofiaimonopolyiandi---iitsi--
-i-iCorrectiAnswer-increases,icost,iincreases,iaverageitotalicost
Whichiofitheifollowingiareicharacteristicsiofiperfecticompetition?i-
iCorrectiAnswer-
manyisellers,ithereiareinoibarriersitoientryioriexit,itheimarketidemandic
urveiisidownwardisloping
TheidemandiforicornifromiHoosierifarmiisiperfectlyielasticibecauseicorni
fromiHoosierifarmsiisi-iCorrectiAnswer-
aiperfectisubstituteiforicornifromiotherifarms
theiprofitimaximizingileveliofioutputiforitheiperfectlyicompetitiveifirmio
ccursiwherei-iCorrectiAnswer-pricei=imarginalicost
Quantityi(Pizzasiforiday)
0
1
, 2
3
4
5
Totalicosti(dollars)
$20
25
35
50
70
95
Theiaboveitableishowsitheitotalicostiofiproducingipizzas.iTheimarketifori
pizzasiisiperfectlyicompetitive.iTheiequilibriumimarketipriceiofiaipizzaiisi
$18.iGivenithisiinformationitheiprofitimaximizingioutputiisi---ipizzasi-
iCorrectiAnswer-3
Quantityi(Pizzasiforiday)
0
1
2
3
4
5
