1A.

A monopoly with constant marginal costs of $50 can sell to three groups of potential consumers, with demandsQ1=800-0.2p,Q2=400-p, andQ3=700-0.4prespectively. Find the optimal price and quantity combination in each market if the firm is able to price discriminate.

Question 9 options:

Q1=500,p1=$905,Q2=200,p2=$150,Q3=200, andp3=$960.

Q1=425,p1=$1,005,Q2=100,p2=$200,Q3=220, andp3=$700.

Q1=395,p1=$2,025,Q2=175,p2=$225,Q3=340, andp3=$900.

Q1=325,p1=$1,800,Q2=300,p2=$175,Q3=140, andp3=$850.

Which of the following is themost likelyreason why the following market is most likelynota perfectly competitive market: market for diamonds.

B.

Barriers to entry: the scarcity of the resource makes it more expensive for potential entrants.

Asymetric information between buyers and sellers on the products involved in this market.

Product differentiation in this market lowers competition among firms.

C.

The inverse market demand curve for a good isp=5004Q. The inverse market supply curve for the good isp=100+6Q. Calculate the equilibrium price and quantity.

Question 5 options:

p=140; Q=40

p=660; Q=40

p=40; Q=140

p=340; Q=40

D.

The inverse market demand curve for a good isp=5004Q. The inverse market supply curve for the good isp=100+6Q. Calculate consumer surplus at equilibrium price and quantity.

Question 6 options:

7200

-3200

3200

32200

E.

The inverse market demand curve for a good isp=5004Q. The inverse market supply curve for the good isp=100+6Q. Calculate producer surplus at equilibrium price and quantity.

Question 7 options:

-4200

11200

800

4800