14 75 A monopolistic firm is discriminating price in two markets where demand curves are: P1 = 150 - 2.5Q1 and P2 = 310 - 10Q2 Monoplist's cost is given as C = 500 + 100 where Q = Q1 + Q2 Firm will make an a. econonomic profit = $70 b. economic profit = $3710 C. economic profit = $5710 d. economic profit = $8130 d o 1 25 Pick the correct answer: a. Short run cost curves follow laws of returns b. Short run average variable cost (AVC) attains its minimum before does the short run average cost (SAC). c. Short run average cost (SAC) attains its minimum before does the short run marginal cost (SMC). d. Both a and b but not c e. Both a and c but not b 0 a O O O 5 2 Which statement is NOT true? a. Less than optimum plants are under run in the long run. b. The Break-even price is where P = SAC c. Short run average variable cost (AVC) is inversely proportional or mirror reflection of the average product d. Economic profit is part of the variable cost. e. When a firm experiences constant returns to scale, all plants are optimally run. Ob e Od O a D 2 75 A competitive firm is in long run equilibrium. The long run cost is C = 0.2q3 - 40q2 + 600q Firm's equlibrium P and q will be a. P = 400 and q = 200 b. P = 1400 and q = 100 c. P = 100 and q = 2000 d. P = 200 and q = 2200 Od a . b 3 55 You are given demand and supply curves as follows: Qd = 120 -10P and Qs = 4P - 20 The cost of production is a. 100 b. 150 c. 200 d. 300 O C d a 4 55 You are given demand and supply curves as follows: Qd = 120-10P and Qs = 4P - 20 When imports are allowed, the free trade decreased price to $8.00. As a result, a. Producer surplus reduced to 18 b. Producer surplus reduced to 32 c. Producer surplus reduced to 50 d. Producer surplus increased by 18 a b 6 2 Equilibrium condition for a competitive firm making an economic profit in the short run is a. P > MR = SMC and P > SAC b. P AVC d. P = MR = SMC and P > SAC Ob O a 7 35 The long run equilibrium condition of a monopolitic firm experiencing constant returns to scale a. P > MR = SMC = LMC MR = SMC = LMC > SAC = LAC c. P > MR = SMC = LMC = SAC = LAC d. P = MR = SMC = LMC > SAC = LAC C a O Ob 7 35 The long run equilibrium condition of a monopolitic firm experiencing constant returns to scale a. P > MR = SMC = LMC MR = SMC = LMC > SAC = LAC c. P > MR = SMC = LMC = SAC = LAC d. P = MR = SMC = LMC > SAC = LAC C a O Ob 8 35 Suppose governemnt wants to regulate the price of a monopolistic firm experiencing constant returns to scale. It will regualte price where a. P = MR = LMC = LAC and firm will make normal profits b. P = MR = LMC = LAC and firm will make smaller plants c. P > MR = LMC = LAC and firm will make normal profits d. None of the above O d O 9 75 The cost of producing 1000 bags of potato chips is given as follows: Labor Cost (wages) = $400; Fuel Cost = $200; Rent on Machines = $700; Rent of Factory shed = $400; Spices etc = 50; Potato = $100; Plastic bags = $50; Interest on Loans = $300; Lump- sum Property Tax = $100 Normal Profit = $200; Economic Profit $500 The Break-even price price for this form is a. $3.00 b. $1.50 c. $2.30 d. $2.40 e. $2.50 Ob Oe Od a 10 25 A per-unit tax on a monopolistic firm will a. increase price and decrease quantity b. increase variable cost and average cost c. increase marginal cost only d. All of the above e. none of the above. C d O e b o a 11 25 In the first degree price discrimination, a. Normal profit is zero b. economic profit is zero, C. consumer surplus is zero d. producer surplus is zero a 12 75 Complete the table to answer the following: Q P TR MR TC MC 1 20 10 2 18 14 3 16 20 4 14 28 5 12 40 6 10 60 At the equilibrium, firm will make a. $0 as economic profits b. $20 as economic profit c. $22 as economic profit d. $28 as economic profit a O O d Ob 13 6 A monopolistic firm's cost is given as C = 100 + 20Q + 202 and the market demand as P = 116 - 20. Firm's a. Economic profit is $476 b. Economic profit is $1104 c. Economic profit is $1806 d. Economic profit is $0 o d a O b 14 75 A monopolistic firm is discriminating price in two markets where demand curves are: P1 = 150 - 2.5Q1 and P2 = 310 - 10Q2 Monoplist's cost is given as C = 500 + 100 where Q = Q1 + Q2 Firm will make an a. econonomic profit = $70 b. economic profit = $3710 C. economic profit = $5710 d. economic profit = $8130 d o 14 75 A monopolistic firm is discriminating price in two markets where demand curves are: P1 = 150 - 2.5Q1 and P2 = 310 - 10Q2 Monoplist's cost is given as C = 500 + 100 where Q = Q1 + Q2 Firm will make an a. econonomic profit = $70 b. economic profit = $3710 C. economic profit = $5710 d. economic profit = $8130 d o 1 25 Pick the correct answer: a. Short run cost curves follow laws of returns b. Short run average variable cost (AVC) attains its minimum before does the short run average cost (SAC). c. Short run average cost (SAC) attains its minimum before does the short run marginal cost (SMC). d. Both a and b but not c e. Both a and c but not b 0 a O O O 5 2 Which statement is NOT true? a. Less than optimum plants are under run in the long run. b. The Break-even price is where P = SAC c. Short run average variable cost (AVC) is inversely proportional or mirror reflection of the average product d. Economic profit is part of the variable cost. e. When a firm experiences constant returns to scale, all plants are optimally run. Ob e Od O a D 2 75 A competitive firm is in long run equilibrium. The long run cost is C = 0.2q3 - 40q2 + 600q Firm's equlibrium P and q will be a. P = 400 and q = 200 b. P = 1400 and q = 100 c. P = 100 and q = 2000 d. P = 200 and q = 2200 Od a . b 3 55 You are given demand and supply curves as follows: Qd = 120 -10P and Qs = 4P - 20 The cost of production is a. 100 b. 150 c. 200 d. 300 O C d a 4 55 You are given demand and supply curves as follows: Qd = 120-10P and Qs = 4P - 20 When imports are allowed, the free trade decreased price to $8.00. As a result, a. Producer surplus reduced to 18 b. Producer surplus reduced to 32 c. Producer surplus reduced to 50 d. Producer surplus increased by 18 a b 6 2 Equilibrium condition for a competitive firm making an economic profit in the short run is a. P > MR = SMC and P > SAC b. P AVC d. P = MR = SMC and P > SAC Ob O a 7 35 The long run equilibrium condition of a monopolitic firm experiencing constant returns to scale a. P > MR = SMC = LMC MR = SMC = LMC > SAC = LAC c. P > MR = SMC = LMC = SAC = LAC d. P = MR = SMC = LMC > SAC = LAC C a O Ob 7 35 The long run equilibrium condition of a monopolitic firm experiencing constant returns to scale a. P > MR = SMC = LMC MR = SMC = LMC > SAC = LAC c. P > MR = SMC = LMC = SAC = LAC d. P = MR = SMC = LMC > SAC = LAC C a O Ob 8 35 Suppose governemnt wants to regulate the price of a monopolistic firm experiencing constant returns to scale. It will regualte price where a. P = MR = LMC = LAC and firm will make normal profits b. P = MR = LMC = LAC and firm will make smaller plants c. P > MR = LMC = LAC and firm will make normal profits d. None of the above O d O 9 75 The cost of producing 1000 bags of potato chips is given as follows: Labor Cost (wages) = $400; Fuel Cost = $200; Rent on Machines = $700; Rent of Factory shed = $400; Spices etc = 50; Potato = $100; Plastic bags = $50; Interest on Loans = $300; Lump- sum Property Tax = $100 Normal Profit = $200; Economic Profit $500 The Break-even price price for this form is a. $3.00 b. $1.50 c. $2.30 d. $2.40 e. $2.50 Ob Oe Od a 10 25 A per-unit tax on a monopolistic firm will a. increase price and decrease quantity b. increase variable cost and average cost c. increase marginal cost only d. All of the above e. none of the above. C d O e b o a 11 25 In the first degree price discrimination, a. Normal profit is zero b. economic profit is zero, C. consumer surplus is zero d. producer surplus is zero a 12 75 Complete the table to answer the following: Q P TR MR TC MC 1 20 10 2 18 14 3 16 20 4 14 28 5 12 40 6 10 60 At the equilibrium, firm will make a. $0 as economic profits b. $20 as economic profit c. $22 as economic profit d. $28 as economic profit a O O d Ob 13 6 A monopolistic firm's cost is given as C = 100 + 20Q + 202 and the market demand as P = 116 - 20. Firm's a. Economic profit is $476 b. Economic profit is $1104 c. Economic profit is $1806 d. Economic profit is $0 o d a O b 14 75 A monopolistic firm is discriminating price in two markets where demand curves are: P1 = 150 - 2.5Q1 and P2 = 310 - 10Q2 Monoplist's cost is given as C = 500 + 100 where Q = Q1 + Q2 Firm will make an a. econonomic profit = $70 b. economic profit = $3710 C. economic profit = $5710 d. economic profit = $8130 d o