Econ 315 Practice Quiz 4 - CH 10 and 11
Study Set And All Accurate Answers.
Scenario 10.1:
Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal
revenue curve and total cost curve are given as follows:
Q = 160 - 4P TR = 40Q - 0.25Q2 MR = 40 - 0.5Q TC = 4Q MC = 4
Refer to Scenario 10.1. How much output will Barbara produce? - Answer 72
Scenario 10.3:
The demand curve and marginal revenue curve for red herrings are given as follows:
Q = 250 - 5P
MR = 50 - 0.4Q
Refer to Scenario 10.3. The marginal cost of red herrings is given as: MC = 0.6Q. What is the
profit-maximizing level of output? - Answer 50
Scenario 10.9:
Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve,
marginal revenue and marginal cost curve for macadamia nuts are given as follows:
P = 360 - 4Q MR = 360 - 8Q MC = 4Q
Refer to Scenario 10.9. What is the profit maximizing level of output? - Answer 30
Figure 10.3
The marginal value curve and expenditure curves in the diagram above are those of a
monopsony.
, The graph
y-axis labeled Price [$ per unit output], in ascending order P5, P4, P3, P2, P1.
x-axis labeled Output, from left to right labeled with Q1, Q2, Q3, and Q4
P5 intersects with Q1 on ME. P5 intersects with Q3 on S=AE.
P4 intersects with Q2 on ME and Q4 on the intersection of S=AE and MV.
P3 intersects with Q3 on the intersection of ME and MV
P2 and P1 hit the MV curve just past Q2 and Q1 respectively. - Answer P4
Figure 10.3
The marginal value curve and expenditure curves in the diagram above are those of a
monopsony.
Refer to Figure 10.3. What quantity will the monopsonist purchase to maximize profit?
Same graph as described above - Answer Q3
A 10 percent decrease in advertising results in a 5 percent sales decrease. The advertising
elasticity of demand is ________. - Answer 0.5
A doctor charges two different prices for medical services, and the price level depends on the
patients' income such that wealthy patients are charged more than poorer ones. This pricing
scheme represents a form of - Answer third-degree price discrimination.
Study Set And All Accurate Answers.
Scenario 10.1:
Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal
revenue curve and total cost curve are given as follows:
Q = 160 - 4P TR = 40Q - 0.25Q2 MR = 40 - 0.5Q TC = 4Q MC = 4
Refer to Scenario 10.1. How much output will Barbara produce? - Answer 72
Scenario 10.3:
The demand curve and marginal revenue curve for red herrings are given as follows:
Q = 250 - 5P
MR = 50 - 0.4Q
Refer to Scenario 10.3. The marginal cost of red herrings is given as: MC = 0.6Q. What is the
profit-maximizing level of output? - Answer 50
Scenario 10.9:
Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve,
marginal revenue and marginal cost curve for macadamia nuts are given as follows:
P = 360 - 4Q MR = 360 - 8Q MC = 4Q
Refer to Scenario 10.9. What is the profit maximizing level of output? - Answer 30
Figure 10.3
The marginal value curve and expenditure curves in the diagram above are those of a
monopsony.
, The graph
y-axis labeled Price [$ per unit output], in ascending order P5, P4, P3, P2, P1.
x-axis labeled Output, from left to right labeled with Q1, Q2, Q3, and Q4
P5 intersects with Q1 on ME. P5 intersects with Q3 on S=AE.
P4 intersects with Q2 on ME and Q4 on the intersection of S=AE and MV.
P3 intersects with Q3 on the intersection of ME and MV
P2 and P1 hit the MV curve just past Q2 and Q1 respectively. - Answer P4
Figure 10.3
The marginal value curve and expenditure curves in the diagram above are those of a
monopsony.
Refer to Figure 10.3. What quantity will the monopsonist purchase to maximize profit?
Same graph as described above - Answer Q3
A 10 percent decrease in advertising results in a 5 percent sales decrease. The advertising
elasticity of demand is ________. - Answer 0.5
A doctor charges two different prices for medical services, and the price level depends on the
patients' income such that wealthy patients are charged more than poorer ones. This pricing
scheme represents a form of - Answer third-degree price discrimination.
