ECON 1002 MICROECONOMICS FINAL EXAM
3 REVIEW QUESTIONS AND ANSWER KEY 2026
◉ According to the accompanying diagram, to maximize profit or
minimize losses, this firm will produce
A) E units at price A.
B) D units at price J.
C) K units at price C.
D) E units at price B.. Answer: A) E units at price A.
◉ According to the accompanying diagram, at the profit-maximizing
output, the firm will realize
A) a loss equal to BCFG.
B) a loss equal to ACFH.
C) an economic profit of ACFH.
,D) an economic profit of ABGH.. Answer: D) an economic profit of
ABGH.
◉ TP AFC AVC ATC MC
1 $100.00 $17.00 $117.00 $17
2 50.00 16.00 66.00 15
3 33.33 15.00 48.33 13
4 25.00 14.25 39.25 12
5 20.00 14.00 34.00 13
6 16.67 14.00 30.67 14
7 14.29 15.71 30.00 26
8 12.50 17.50 30.00 30
9 11.11 19.44 30.55 35
10 10.00 21.60 31.60 41
11 9.09 24.00 33.09 48
12 8.33 26.67 35.00 56
The accompanying table gives cost data for a firm that is selling in a
purely competitive market. If the market price for the firm's product
is $32, the competitive firm will produce
,A) 6 units at an economic profit of $7.98.
B) 7 units at an economic profit of $41.50.
C) 8 units at an economic profit of $16.
D) 8 units at an economic profit of $4.. Answer: C) 8 units at an
economic profit of $16.
◉ TP AFC AVC ATC MC
1 $150.00 $25.00 $175.00 $25
2 75.00 23.00 98.00 21
3 50.00 20.00 70.00 14
4 37.50 21.00 58.50 24
5 30.00 23.00 53.00 31
6 25.00 25.00 50.00 35
7 21.43 28.00 49.43 46.01
8 18.75 33.00 51.76 68.07
9 16.67 39.00 55.67 86.95
10 15.00 48.00 63.00 128.97
, The accompanying table gives cost data for a firm that is selling in a
purely competitive market. If the market price for this firm's product
is $15, it will produce
A) 0 units at a loss of $150.
B) 3 units at a loss of $168.
C) 3 units at an economic profit of zero.
D) 4 units at a loss of $138.. Answer: A) 0 units at a loss of $150.
◉ When will economic profit be realized?. Answer: If the price were
set higher than the minimum of ATC, the firm would earn a
economic profit
◉ When will economic loss be realized?. Answer: If the price were
set lower than the minimum of ATC, the firm would earn a economic
loss
◉ Loss Minimizing Case. Answer: - Loss minimization
- Still produce because MR > minimum AVC
- Losses at a minimum where MR = MC
3 REVIEW QUESTIONS AND ANSWER KEY 2026
◉ According to the accompanying diagram, to maximize profit or
minimize losses, this firm will produce
A) E units at price A.
B) D units at price J.
C) K units at price C.
D) E units at price B.. Answer: A) E units at price A.
◉ According to the accompanying diagram, at the profit-maximizing
output, the firm will realize
A) a loss equal to BCFG.
B) a loss equal to ACFH.
C) an economic profit of ACFH.
,D) an economic profit of ABGH.. Answer: D) an economic profit of
ABGH.
◉ TP AFC AVC ATC MC
1 $100.00 $17.00 $117.00 $17
2 50.00 16.00 66.00 15
3 33.33 15.00 48.33 13
4 25.00 14.25 39.25 12
5 20.00 14.00 34.00 13
6 16.67 14.00 30.67 14
7 14.29 15.71 30.00 26
8 12.50 17.50 30.00 30
9 11.11 19.44 30.55 35
10 10.00 21.60 31.60 41
11 9.09 24.00 33.09 48
12 8.33 26.67 35.00 56
The accompanying table gives cost data for a firm that is selling in a
purely competitive market. If the market price for the firm's product
is $32, the competitive firm will produce
,A) 6 units at an economic profit of $7.98.
B) 7 units at an economic profit of $41.50.
C) 8 units at an economic profit of $16.
D) 8 units at an economic profit of $4.. Answer: C) 8 units at an
economic profit of $16.
◉ TP AFC AVC ATC MC
1 $150.00 $25.00 $175.00 $25
2 75.00 23.00 98.00 21
3 50.00 20.00 70.00 14
4 37.50 21.00 58.50 24
5 30.00 23.00 53.00 31
6 25.00 25.00 50.00 35
7 21.43 28.00 49.43 46.01
8 18.75 33.00 51.76 68.07
9 16.67 39.00 55.67 86.95
10 15.00 48.00 63.00 128.97
, The accompanying table gives cost data for a firm that is selling in a
purely competitive market. If the market price for this firm's product
is $15, it will produce
A) 0 units at a loss of $150.
B) 3 units at a loss of $168.
C) 3 units at an economic profit of zero.
D) 4 units at a loss of $138.. Answer: A) 0 units at a loss of $150.
◉ When will economic profit be realized?. Answer: If the price were
set higher than the minimum of ATC, the firm would earn a
economic profit
◉ When will economic loss be realized?. Answer: If the price were
set lower than the minimum of ATC, the firm would earn a economic
loss
◉ Loss Minimizing Case. Answer: - Loss minimization
- Still produce because MR > minimum AVC
- Losses at a minimum where MR = MC
