INTRO TO MICRO ECON
INTRO TO MICRO ECON ECON 2103
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This 0 page Class Notes was uploaded by Mandy Schmitt on Sunday November 1, 2015. The Class Notes belongs to ECON 2103 at Oklahoma State University taught by Angela Thomas in Fall. Since its upload, it has received 12 views. For similar materials see /class/232926/econ-2103-oklahoma-state-university in Economcs at Oklahoma State University.
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Date Created: 11/01/15
Test 3 1 The shape of the average total cost curve reveals information about the nature of barrier to entry that might exist in a monopoly market Which of the following monopoly types best coincides with the figure B natural monopoly 2 When a monopolist decreases the price of its good cionsumers B buy more 3 Monopolies use their market power to C charge a price that is higher than marginal cost 4 which of the following statements is correct A panel c represents the typical demand curve for a perfectly competitive firm and panel b represents the typical demand curve for a monopoly 5 What price will the monopolist charge B 6 A market structure in which there are many firms selling products that are similar buy not identical is known as C monopolistic competition 7 a monopolistically competitive firm faces the following demand schedual for its product The firm has total fixed costs of 20 and a constant marginal cost of 2 per unit the firm wil maximize profit with B 9 units of output 8 Which of the folling conditions is characteristic of a monopolistically competitive firm in both the short run and the long run A PgtMC 9 What is the profit maximizing price quantity and resulting profit B P80 Q 20 units profit 200 10 Which of the graphs depicts a short run equilibrium that will encourage the entry of other firms into a monopolistically competitive industry 11 If isia and mard operate a profit maximizing monopoly in the market for watere what price will they charge C 60 12 if the market for water were perfectly competitive instead of monopolistic how many gallons of water would be produced and sold D 1200 13 in markets characterized by oligopoly A the oligopolists earn the highest profit when they cooperate and behave like a monopolist 14 increasing the size of its store and parking lot is a dominant strategy for C both stores 15 the dominant strategy for abc is to A produce high output and dominant strategy for xyz is to produce high output 16 if Amanda sells 200 glasses of lemonade at 50 each her total revenues are A 100 17 Kristen sells 300 glasses of lemonade at 50 each ther total costs are 125 her profits are A 25 18 Katherine gives piano lessons for 20 per hour she also grows flower which she arranges and sells at the local farmers market one day she spends 5 hours planting 50 worth of seeds in her garden once the seeds have grown into flowers she can sell them for 150 at the farmsers market which of the following statetments is correct regarding katherines profits from selling flowers B katherines accounting profits are 100 and her economic profits are 0 19 a total cost curve shows the relationship betwwen the B quantity of output produced and the total cost production 20 in the short run a firm will have what types of costs D both a and b fixed and variable 21 a market is competitive if C eache buyer is mall And each seller is small 22 for a firm operating in a competitive market the price is C 14 23 suppose a firm in a competitive market received 1000 in total revenue and had a marginal revenue of 10 for the last unit produced sold What is the average revenue per unit and how many units were sold D 10 and 100 units 24 what is the total revenue from selling 7 units D 840 25 a firm operating in a competitive market and facing the total costs listed in the table will not produce an output level beyond C 6 units Test 2 13 without a tax consumer surplus in this market is D 3600 14 without a tax producer surplus in this market is B 2400 15 without a tax total surplus in this market is c 6000 16 when the tax is placed on this good the quantity sold is D is 300 and buyers effectively pay 16 17 when the government inposes the tax in this market tax revenue is D 3000 18 total surplus with the tax in place is C 4500 19 The tax results in a dead weight loss that amounts to C 1500 20 assume for the US that the domestic price of beef without interntational trade is lower that the world price of beef This suggests that in the production of beef A The US has a comparative advantage other othercontries and the US will export beef 21 Suppose the United states exports cars to France and imports cheese from Switzerland This situation suggests that B the United States has a comparative advantage relative to france in producing cars and Switzerland has a comparative advantage relative to the united states in producing cheese 22 Consumer surplus before trade is D 3600 23 Consumer surplus after trade is A 1600 24 producer surplus before trade is A 3600 25 producer surplus after trade is C 6400 Test 1 16Chapter 1 Test 1 1 1 A PPF may shift outward if there is a technological improvement 2 If devotes all production to bannans it prod 300 bannans and 0 baseballs 3 Economy able to produce at abcdfg 4 Sardi has the absolute advantage in neither and Tinak has abs adv in production on both 5 Sardi has comp adv in prod of pork and tinaka in corn 6 Assume aruba and Iceland have 80 labor avail If prod divided e then prod tot is 60 coolers and 18 radios 7 Arubasopp cost of one cooleris 4 radios and icelandsopp cost of one cooler is 25 radios 8 Aruba should specialize in radios and Iceland should specialize in production of radios 9 If these oare the only four buyers in the market then the mktqty demanded is 31 units 10 If these oare the only four buyers in the market then when price increases from 1 to 15 the mktqty demanded is decreased by 7 units 11 If these r the only four sellers then whn price increases from 10 to 8 the mktqty supplied is decreased by 10 units 12 If these r the only 2 sellers In the market then the mktqty supplied at price of 6 is 22 units 13 The ibrium price and qty respectively are 6 and 30 14 If the price were 8 a surplus of 25 units would exist and price would tend to rise 15 If the price elasticity of deman for a good is 15 thean a decrease in price results in a 45 increase in the quantity demanded 16 Studies indicate that the price elasticity of demand for cigarettes is about 4 A gvmnt policy aimed at reducing smoking chaged the price of a pack of cigarettes from 2 to 6 According to the midpoint mthd the gmntpolic should have reduced smoking by 40 17 Using the midpoint method the price elasticity of demand between point A and point B is 25 18 Ifa 25 change in price results in a 40 cange in qty demanded supplied then the price elasticity of supply is 16 and supply is elastic 19 If the price elasticity of supply is 15 and a price increase led to a 18 increase in quantity supplied the th price increase amounted to 12 20 Using the midpoint method what is the price of supply between 4 and 6 125 21 Approx what age of the worlds economies experience scarity 100 N N Mallort decided to spend three hours working overtime rather than watching a video with her friend She earns 8hour Her opp cost is the enjoyment she would have received had she watched the video 23 The principle that trad can make everyon better off applies to all of the above 24 Which arrow represents the flow of goods and services B 25 Which arrow represents the flow of income payments D Test 2 17 1 Which of the following price ceilings would be binging in this market 2 2 Which of the following statements is correct A price ceiling set at 6 will be bindig and will result in a shortage of8 units 5 Which of the following statements is correct A price floor set at 16 will be binding and will result in a surplus of 12 units The amount of tax per unit is 14 The perunit burden of the tax on the buyers is 8 The perunit burden of the tax on sellers is 6 If the price of the product is 18 then the total consumer surplus is 46 Ronnie operates a lawncare service On each day the cost of mowing his 1st lawn is 10 the cost of the 2nd is 12 and the 3rd is 15 His producer surplus on the first three lawns of the day is 53 If Ronnie charges all the customes the same price for lawn mowing that price would be 30 9 At the brium price consumer surplus is 300 10 At the brium price producer surplus is 200 11 At the brium price the total surplus is 500 12 The total surplus can be measured as the area JNL 9 gtIswngt Test 3 17