Question 26 Question text The table below shows the total value (in dollars) that Andrew gets from playing 9-hole rounds of golf.

Rounds of Golf per Month Total Value ($) 0 0 1 40 2 70 3 92 4 108 5 120 6 130 7 130

TABLE 6-3

Refer to Table 6-3. If the price of a 9-hole round of golf is $22, and Andrew is maximizing his utility, then his consumer surplus will be

a. $26.

b. $92.

c. $108.

d. $202.

e. $22.

Question 27 Assume the following total cost schedule for a perfectly competitive firm.

Output TVC ($) TFC ($) 0 0 100 1 40 100 2 70 100 3 120 100 4 180 100 5 250 100 6 330 100 TABLE 9-1

Refer to Table 9-1. What is the marginal cost of producing the 2nd unit of output?

a. $15

b. $10

c. $30

d. $5

e. $35

Question 28 Not yet answered Marked out of 0.50 Consider a monopolist that is able to distinguish between two distinct market segments, A and B, for its product. Marginal cost is constant at $100 for each unit produced. The firm is currently selling its output at a single price and allocating its output across segments such that marginal revenue in segment A is $85 and marginal revenue in segment B is $105. How can this firm maximize its profit?

a. increase the output in segment A and decrease the output in segment B

b. decrease the output in segments A and B

c. maintain the current output and its allocation across segments

d. increase the output in segments A and B

e. decrease the output in segment A and increase the output in segment B

Question 29 If the price of a good increases, what do consumers perceive, all else being equal?

a. an increase in purchasing power if the good is an inferior good

b. an increase in income if the price increase occurs for a normal good

c. a decrease in purchasing power

d. a net gain in income if they increase consumption of some goods

Question 30 Not yet answered Marked out of 0.50 Not flaggedFlag question Question text A perfectly competitive firm's demand curve

a. is identical to the market demand curve.

b. has unit elasticity.

c. yields constant total revenues.

d. is downward sloping.

e. is a horizontal line where P = AR = MR.