Multiple choice question

Question 1 Optimal design of a profit-maximising second degree price discrimination scheme involves Not yet saved Marked out of O a. offering high-demand consumers the socially efficient quantity for their type and offering low-demand 2.00 consumers more than the socially efficient quantity for their type. Flag question O b. offering high-demand consumers less than the socially efficient quantity for their type and offering low- demand consumers the socially efficient quantity for their type. O c. offering both high-demand and low-demand consumers the socially efficient quantity for their type. O d. none of the other answers O e. offering both high-demand and low-demand consumers less than the socially efficient quantity for their type.Question 2 Not yet saved Marked out of 2.00 '5" Flag q uestion A competitive market has demand of Q = 50 - 0.5P and total cost of production is C=70q for each firm. What is the effect of an innovation by one rm that gives a marginal cost of $28? Select one: 0 a. This is a non-drastic innovation that causes the market quantity to be 18. O b. This is a drastic innovation that causes the market quantity to be 19. O c. This is a non-drastic innovation that causes the market quantity to be 19. 0 d. This is a drastic innovation that causes the market quantity to be 18. 0 e. This is a drastic innovation that causes the market quantity to be 36. Question 3 Suppose the market demand curve is given by the equation Q = 10 0.5P and the marginal cost (and average cost) is Not yet saved 6. What is the difference in consumer surplus between a competitive market and a monopoly? Marked out of 2'00 O :3. none of the other answers 'F Flag question 0 b. 35.75 0 c. 26.75 0 d. 32.75 0 e. 33.75 Question 4 Which of the following would not generally be associated with a more concentrated market? Not yet saved Marked out of O a. A merger between two large firms 2.00 O b. Large fixed/sunk costs Flag question O c. Large indivisible inputs O d. A low value of the HHI O e. none of the other answersQuestion 5 There are 2 consumers with demand curves given by Q = 18 - P and Q = 14 - P. In addition, marginal cost = 6. The Not yet saved firm is not able to distinguish between the 2 consumers but wants to maximise profit using second degree price Marked out of discrimination. This profit will be: 2.00 Flag O a. 80 question O b. 128 O c. none of the other answers O d. 96 O e. 72Question 6 Bertrand (differentiated products) best response functions and Cournot best response functions are examples of Not yet saved Marked out of Select one: 2.00 O a. strategic complements and strategic substitutes, respectively. Flag question O b. strategic substitutes and strategic complements, respectively. O c. strategic substitutes. O d. strategic complements. O e. none of the other answers