question

Suppose the demand for a good was given by Qd=430-p and the supply was given by Qs=5p-1490. The equilibrium quantity of this good is 110 units. Calculate the gains from trade

answer

7260

question

Calculate the markup

answer

difference between mr=mc price and the price where it hits demand curve

question

Which of the following activities are NOT prohibited or regulated by anti-trust laws

answer

Price Discrimination

question

Suppose that a market had a demand function given by qd=140-p and a supply function given by 8p-220. The equilibrium quantity in the market is 100 units. Calculate the deadweight loss from a price ceiling of 30.

answer

3600

question

Which of the following would be considered a source of market power

answer

few firms

question

Suppose that good X is an inferior good and that average incomes of consumers rise. What will happen to the equilibrium price and quantity of good x

answer

price of good x falls. quantity of good x falls

question

Suppose the wage rate was $2 and the rental rate was $1. A firm that uses labor and capital has a goal of 400 units of output and wants to minimize the costs of producing it. The firm's production function is given by q=L^.4K^.5. Calculate the amount of labor

answer

467.84

question

If a firm engages in the pricing practice of a two part tariff then the per unit price is equal to _________ and the fixed fee is equal to ________

answer

Marginal cost, consumer surplus

question

Calculate producer surplus

answer

triangle area above supply curve

question

Which of the following statements is true about natural monopolies

answer

multi-firm competition will have higher average total costs of production

question

suppose that in the long run, a firm increases its output and the firm's average total costs are higher

answer

diseconomy of scale

question

Deadweight loss can be caused when a good is NOT produced

answer

and the reservation price of the good is higher than the marginal cost

question

Suppose the supply of a good was given by qs=4p-1000. the government levies a 340 per unit tax on the suppliers. Find the new supply function and fill in the missing number. Qtax=4p-____

answer

2360

question

Which of the following statements about price-taker firms in the short run is FALSE

answer

the demand for the individual firm's product is perfectly elastic

question

suppose that the choke price of a good was 101. if the price of that goos is 87 then the quantity demanded is 14 units. Calculate the consumer surplus for this good

answer

98

question

Which of the following statements is true about a laffer curve

answer

The government's tax revenues first increase then decrease as tax rates increase from zero

question

Suppose a price-taking firm in the short run had a total cost function given by TC=90+2q+.1q^2. Calculate the profit-maximizing quantity of output when the price is 8.40

answer

32

question

Suppose that a consumer's budget constraint shift to the left and is parallel to the original budget constraint.

answer

A decrease in the consumer budget

question

Least profitable to most profitable

answer

competitive market

producing the cartel quota

cheating on the cartel

producing the cartel quota

cheating on the cartel

question

Which of the following statements is true about 1st degree price discrimination

answer

there is no deadweight loss

question

Suppose that the market clearing price of a good is 10. if a price floor is set at 11, what will happen to the market

answer

There will be a surplus and deadweight loss

question

Suppose that the demand for a good was given by Qd=10-2p. if the price of the good is 2 then the own-price elasticity of demand is _____ and would be considered ______

answer

-.67, inelastic

question

the accounting profit of running a business will the accounting revenues minus

answer

explicit costs

question

A type of acquired regulation for the pharmaceutical industry might include

answer

Safety regulation that is difficult for small firms to comply with

question

Suppose a firm had two types of customers. Type A have an own-price elasticity of -2. Type B have an own-price elasticity of -4. If the firm engages in third-degree price discrimination what will it do?

answer

charge type A customers a high price and type b customers a low price

question

Suppose a single-price monopolist had a total cost function given by TC= 2Q+.25Q^2. The demand for the firm's product is given by Qd=34-2p and its marginal revenue of the monopolist is given by MR=17-Q. Calculate the single-price monopolist price

answer

12

question

The change in consumption of a good associated with a change in its price with level of utility held constant is called the ________ the change in consumption of a good resulting from an increase in purchasing power, with relative prices held constant is called the _______

answer

substitution effect, income effect

question

Suppose that the demanders of a firm's product are all identical and their demand functions are given by Qd=10-p. The firm's marginal cost is constant $1 per unit.

The firm engages in a second degree price discrimination scheme where the first two units are 8 each. any additional unit is only 6. Calculate the producer surplus

The firm engages in a second degree price discrimination scheme where the first two units are 8 each. any additional unit is only 6. Calculate the producer surplus

answer

24

question

Suppose that there is a market with a demand given by Qd=186-.2p and a supply given by Qs=4p-150. The equilibrium price in the market is 80. Suppose there is a price floor of 330. Calculate the producer surplus

answer

?

question

Suppose that a single-price monopolist had a demand for its product given Qd=100-4p. Find the firm's marginal revenue function and fill in the blanks

MR= 25- ____q

MR= 25- ____q

answer

.5

question

The government should

Barrier to entry are associated with

Barrier to entry are associated with

answer

normative

positive

positive

question

Determine MRTS

answer

difference between 2 capital points

question

Suppose that the demand for good x was given by the function Qd=100-2Px-2Py. an increase in price of good y will cause

answer

a contraction of demand for good x

question

Suppose that the market-clearing price of a good is $10. if a price ceiling is set at 11 what will happen

answer

the market will still be in equilibrium and have no deadweight loss

question

list quantities with 1 or more goods

answer

Bundle

Basket

Basket

question

A) price of good X is 2 for the first unit and .5 for any additional

B) Price of good X is 1 and price of good y is 1

B) Price of good X is 1 and price of good y is 1

answer

Scenario B has higher utility

question

Suppose the government wanted to tax a good that would cause the lease amount of DWL _______ suppose the government wanted to tax a good that would raise the most revenue _____

answer

inelastic, inelastic

question

Suppose the demand for good X is given by Qd= 71 - 4Px. calculate choke price

answer

17.75

question

Suppose that own-price elasticity of demand for a good was -3 and the own-price elasticity of supply was 1. Percent of tax burden

answer

25

question

Consumer surplus

Producer Surplus

DWL

Producer Surplus

DWL

answer

know where they are on a graph

question

Suppose that the demand for a good was given by Qd=100-2P and the supply was given by Qs=2p-20. At price 15 there will be a ______ of ______

answer

shortage of 60

question

UTILITY FUNCTION

answer

?

question

Government expenditure

answer

left rectangle

question

Suppose that a consumer MRS was greater than MKTS for bundle A

answer

include more of good X than Bundle A

question

Suppose that demand for a good was given by Qd=230-P. The supply of that good is given by Qs=6P-400. Calculate the market clearing price

answer

90