Econ B 251 Final Exam ACTUAL
QUESTIONS AND CORRECT 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 $ - CORRECT ANSWERS
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 $--- - CORRECT ANSWERS 4, 12, 48
Joe, a hair dresser, offers students a discount price on haircuts. This form of
pricing is an example of - CORRECT ANSWERS price discrimination
The more perfectly a monopoly can price discriminate, the --- its output and the
--- its profit. - CORRECT ANSWERS larger, larger
compared to a similar perfectly competitive industry, a single-price monopoly
decreases consumer surplus and decreases economic efficiency. - CORRECT
ANSWERS Decreases, decreases
Rent seeking by a monopolist --- the social cost of a monopoly and --- its --- -
CORRECT ANSWERS increases, cost, increases, average total cost
Which of the following are characteristics of perfect competition? - CORRECT
ANSWERS 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 - CORRECT ANSWERS a perfect substitute for corn
from other farms
the profit maximizing level of output for the perfectly competitive firm occurs
where - CORRECT ANSWERS 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 - CORRECT
ANSWERS 3
Quantity (Pizzas for day)
0
1
QUESTIONS AND CORRECT 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 $ - CORRECT ANSWERS
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 $--- - CORRECT ANSWERS 4, 12, 48
Joe, a hair dresser, offers students a discount price on haircuts. This form of
pricing is an example of - CORRECT ANSWERS price discrimination
The more perfectly a monopoly can price discriminate, the --- its output and the
--- its profit. - CORRECT ANSWERS larger, larger
compared to a similar perfectly competitive industry, a single-price monopoly
decreases consumer surplus and decreases economic efficiency. - CORRECT
ANSWERS Decreases, decreases
Rent seeking by a monopolist --- the social cost of a monopoly and --- its --- -
CORRECT ANSWERS increases, cost, increases, average total cost
Which of the following are characteristics of perfect competition? - CORRECT
ANSWERS 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 - CORRECT ANSWERS a perfect substitute for corn
from other farms
the profit maximizing level of output for the perfectly competitive firm occurs
where - CORRECT ANSWERS 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 - CORRECT
ANSWERS 3
Quantity (Pizzas for day)
0
1
