Managerial Economics)

This exam consists of 10 questions. Each one of them is worth 5 points, for a total of 50 points.

Quantity Demanded	Price (in $)	Quantity Supplied
2	$200	9
4	$150	7
6	$100	6
8	$50	3

Question 1: Please, refer to the table above. What are the market price and the market-clearing quantity?

Question 2:What is going to happen to quantity demanded and quantity supplied if the price changes from $200 to $150?

Question 3: What is the usual result when a price floor is imposed at a level above the equilibrium?

Question 4: Please, describe the principal-agent problem and provide an example.

Question 5: What is the difference between accounting profit and economic profit?

Question 6:What isthe sum of consumer surplus and producer surplus called?

Question 7: Under what conditions can we describe a firm as a price-taker?

Question 8: Under what condition is the profit maximizing level of output achieved?

Question 9: When should a firm operating at a loss in the short-run shut down and stop producing?

Question 10: What is the difference between productive efficiency and allocative efficiency?