LSU ECON 2030 newest actual 2025/2026 FINAL EXAM with
complete QUESTIONS AND ANSWERS /VERIFIED/GRADED A+.
Suppose the ration and chic Amber saw a beautiful pair of shoes
priced at $995 and she bought them. Suppose further that her
consumer surplus from the purchase was $200. It can be
concluded with certainty that her reservation price for buying the
loafers was
a) $0
b) $200
c) $795
d) $995
e) $1195 - ---Answers----e) $1195
At a given point in time, suppose a monopolist is producing its
profit-maximizing level of output and is earning an economic
profit equal to zero. Everything else held constant, which will the
monopolist do in the long run?
a) remain in business
b) shut down - ---Answers----a) remain in business
Suppose Rachel is the only person in her town(i.e. a monopolist)
who performs weddings and she is producing her profit-
maximizing level of output. Suppose further that at this level of
,production, Rachel's average fixed cost of performing a wedding
is $75, her average variable cost is $100, and the marginal
revenue from performing a wedding is $175. Everything else held
constant, Rachel's profit from performing weddings is _______
zero.
a) equal to
b) greater than
c) less than - ---Answers----b) greater than
Suppose the price at which a monopolist is selling its output is
$10 and the marginal revenue associated with the last unit of
output sold is $8. Suppose further that the marginal cost of
producing the last unit of output sold is $6. Which of the
following actions should the non-price discriminating monopolist
take to increase its profits?
a) increase output and decrease price
b) decrease output and decrease price
c) decrease output and increase price
d) increase output and increase price - ---Answers----a)
increase output and decrease price
Suppose the government imposes an excise tax of $10 per unit
on bicycles. Suppose further that buyers bear 65 percent of the
burden of the tax.
,After the tax is imposed, the price the sellers receive for selling
a bicycle will be ______ than it was before the tax, everything else
held constant.
a) $3.50 higher
b) $3.50 lower
c) $10.00 higher
d) $6.50 lower
e) $6.50 higher - ---Answers----b) $3.50 lower
Suppose the government imposes an excise tax of $10 per unit
on bicycles. Suppose further that buyers bear 65 percent of the
burden of the tax.
In the situation above, which of the following can be concluded
with certainty?
a) The demand for bicycles is relatively more price elastic than
the supply is
b) the demand for bicycles is relatively more price inelastic than
the supply is
c) The demand for bicycles is price elastic
d) The demand for bicycles is price inelastic - ---Answers----b)
the demand for bicycles is relatively more price inelastic than
the supply is
, Suppose, at a given point in time, Snappy Shack operates in a
perfectly competitive market and is producing its profit-
maximizing level of output. Suppose further that at this level of
production, Snappy's average total cost of producing snacks is
$1.70, average variable cost is $1.25, and marginal cost is $1.60.
Over time in the situation above, the number of firms selling
snacks will ____, everything else held constant.
a) increase
b) decrease
c) remain unchanged - ---Answers----b) decrease
Suppose, at a given point in time, Snappy Shack operates in a
perfectly competitive market and is producing its profit-
maximizing level of output. Suppose further that at this level of
production, Snappy's average total cost of producing snacks is
$1.70, average variable cost is $1.25, and marginal cost is $1.60.
Over time in the situation above, profits in the snack market will
_____, everything else held constant.
a) decrease
b) remain unchanged
c) increase - ---Answers----c) increase
complete QUESTIONS AND ANSWERS /VERIFIED/GRADED A+.
Suppose the ration and chic Amber saw a beautiful pair of shoes
priced at $995 and she bought them. Suppose further that her
consumer surplus from the purchase was $200. It can be
concluded with certainty that her reservation price for buying the
loafers was
a) $0
b) $200
c) $795
d) $995
e) $1195 - ---Answers----e) $1195
At a given point in time, suppose a monopolist is producing its
profit-maximizing level of output and is earning an economic
profit equal to zero. Everything else held constant, which will the
monopolist do in the long run?
a) remain in business
b) shut down - ---Answers----a) remain in business
Suppose Rachel is the only person in her town(i.e. a monopolist)
who performs weddings and she is producing her profit-
maximizing level of output. Suppose further that at this level of
,production, Rachel's average fixed cost of performing a wedding
is $75, her average variable cost is $100, and the marginal
revenue from performing a wedding is $175. Everything else held
constant, Rachel's profit from performing weddings is _______
zero.
a) equal to
b) greater than
c) less than - ---Answers----b) greater than
Suppose the price at which a monopolist is selling its output is
$10 and the marginal revenue associated with the last unit of
output sold is $8. Suppose further that the marginal cost of
producing the last unit of output sold is $6. Which of the
following actions should the non-price discriminating monopolist
take to increase its profits?
a) increase output and decrease price
b) decrease output and decrease price
c) decrease output and increase price
d) increase output and increase price - ---Answers----a)
increase output and decrease price
Suppose the government imposes an excise tax of $10 per unit
on bicycles. Suppose further that buyers bear 65 percent of the
burden of the tax.
,After the tax is imposed, the price the sellers receive for selling
a bicycle will be ______ than it was before the tax, everything else
held constant.
a) $3.50 higher
b) $3.50 lower
c) $10.00 higher
d) $6.50 lower
e) $6.50 higher - ---Answers----b) $3.50 lower
Suppose the government imposes an excise tax of $10 per unit
on bicycles. Suppose further that buyers bear 65 percent of the
burden of the tax.
In the situation above, which of the following can be concluded
with certainty?
a) The demand for bicycles is relatively more price elastic than
the supply is
b) the demand for bicycles is relatively more price inelastic than
the supply is
c) The demand for bicycles is price elastic
d) The demand for bicycles is price inelastic - ---Answers----b)
the demand for bicycles is relatively more price inelastic than
the supply is
, Suppose, at a given point in time, Snappy Shack operates in a
perfectly competitive market and is producing its profit-
maximizing level of output. Suppose further that at this level of
production, Snappy's average total cost of producing snacks is
$1.70, average variable cost is $1.25, and marginal cost is $1.60.
Over time in the situation above, the number of firms selling
snacks will ____, everything else held constant.
a) increase
b) decrease
c) remain unchanged - ---Answers----b) decrease
Suppose, at a given point in time, Snappy Shack operates in a
perfectly competitive market and is producing its profit-
maximizing level of output. Suppose further that at this level of
production, Snappy's average total cost of producing snacks is
$1.70, average variable cost is $1.25, and marginal cost is $1.60.
Over time in the situation above, profits in the snack market will
_____, everything else held constant.
a) decrease
b) remain unchanged
c) increase - ---Answers----c) increase
