Econ B 251 Final Exam questions
and answers
Quantity ( Pizzas per day)
0
1
2
3
4
5
Price (dollars per pizzas)
$20
18
16
14
12
10
The table above shows the demand for a monopolist's output. The marginal revenue
of increasing production from 3 to 4 units is $✔✔6
Quantity ( Pizzas per day)
0
1
2
3
4
5
Price (dollars per pizzas)
$20
18
16
14
12
10
The table above shows the demand for a monopolists output. iF the pizzeria is a
single-price monopoly and the marginal cost of a pizza is $6, then the firms profit
maximizing output is --- pizzas. At that amount the firm charges a price of $--- and its
total revenue is $---✔✔4, 12, 48
Joe, a hair dresser, offers students a discount price on haircuts. This form of pricing
is an example of✔✔price discrimination
The more perfectly a monopoly can price discriminate, the --- its output and the --- its
profit.✔✔larger, larger
compared to a similar perfectly competitive industry, a single-price monopoly
decreases consumer surplus and decreases economic efficiency.✔✔Decreases,
decreases
, Rent seeking by a monopolist --- the social cost of a monopoly and --- its ---
✔✔increases, cost, increases, average total cost
Which of the following are characteristics of perfect competition?✔✔many sellers,
there are no barriers to entry or exit, the market demand curve is downward sloping
The demand for corn from Hoosier farm is perfectly elastic because corn from
Hoosier farms is✔✔a perfect substitute for corn from other farms
the profit maximizing level of output for the perfectly competitive firm occurs
where✔✔price = marginal cost
Quantity (Pizzas for day)
0
1
2
3
4
5
Total cost (dollars)
$20
25
35
50
70
95
The above table shows the total cost of producing pizzas. The market for pizzas is
perfectly competitive. The equilibrium market price of a pizza is $18. Given this
information the profit maximizing output is --- pizzas✔✔3
Quantity (Pizzas for day)
0
1
2
3
4
5
Total cost (dollars)
$20
25
35
50
70
95
The above table shows the total cost of producing pizzas. The market for pizzas is
perfectly competitive. The equilibrium market price of a pizzas is $19. Given this
information the profit maximizing output is --- pizzas total revenue is $--- total cost is
$--- and the forms economic profit is $---✔✔3,57,50,7
and answers
Quantity ( Pizzas per day)
0
1
2
3
4
5
Price (dollars per pizzas)
$20
18
16
14
12
10
The table above shows the demand for a monopolist's output. The marginal revenue
of increasing production from 3 to 4 units is $✔✔6
Quantity ( Pizzas per day)
0
1
2
3
4
5
Price (dollars per pizzas)
$20
18
16
14
12
10
The table above shows the demand for a monopolists output. iF the pizzeria is a
single-price monopoly and the marginal cost of a pizza is $6, then the firms profit
maximizing output is --- pizzas. At that amount the firm charges a price of $--- and its
total revenue is $---✔✔4, 12, 48
Joe, a hair dresser, offers students a discount price on haircuts. This form of pricing
is an example of✔✔price discrimination
The more perfectly a monopoly can price discriminate, the --- its output and the --- its
profit.✔✔larger, larger
compared to a similar perfectly competitive industry, a single-price monopoly
decreases consumer surplus and decreases economic efficiency.✔✔Decreases,
decreases
, Rent seeking by a monopolist --- the social cost of a monopoly and --- its ---
✔✔increases, cost, increases, average total cost
Which of the following are characteristics of perfect competition?✔✔many sellers,
there are no barriers to entry or exit, the market demand curve is downward sloping
The demand for corn from Hoosier farm is perfectly elastic because corn from
Hoosier farms is✔✔a perfect substitute for corn from other farms
the profit maximizing level of output for the perfectly competitive firm occurs
where✔✔price = marginal cost
Quantity (Pizzas for day)
0
1
2
3
4
5
Total cost (dollars)
$20
25
35
50
70
95
The above table shows the total cost of producing pizzas. The market for pizzas is
perfectly competitive. The equilibrium market price of a pizza is $18. Given this
information the profit maximizing output is --- pizzas✔✔3
Quantity (Pizzas for day)
0
1
2
3
4
5
Total cost (dollars)
$20
25
35
50
70
95
The above table shows the total cost of producing pizzas. The market for pizzas is
perfectly competitive. The equilibrium market price of a pizzas is $19. Given this
information the profit maximizing output is --- pizzas total revenue is $--- total cost is
$--- and the forms economic profit is $---✔✔3,57,50,7
