mid107 - Eco 171 - Industrial Organization First Midterm...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Eco 171 - Industrial Organization First Midterm Exam Name : Section: Instructions There are 6 short questions and 2 problems. Short questions are worth a total of 40 points and the problems a total of 60 points. Answer in the space provided (no need to use it all.) If necessary use the back of the page. For the short questions, don’t forget to explain your answer.DONT FORGET TO WRITE DOWN YOUR NAME. Part I. Short questions 1. A restaurant chain has to choose how many stores to open in a city. Assume it o f ers free delivery. Then it will open a socially excessive number of stores. True or false. Explain. 2. Demand elasticity in market A is half the demand elasticity in market B and the price a monopolist is charging twice as high. Show that the price in market B is 50% higher than marginal cost. . 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3. A monopolist sells to several markets and is able to do third degree price discrimination. It will choose quantities so that elasticities are equated across these markets. True or False? Explain. . 4. A monopolist has three markets to which it can sell: US, Europe and
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/13/2008 for the course ECON 171 taught by Professor Hopenhayn during the Fall '07 term at UCLA.

Page1 / 6

mid107 - Eco 171 - Industrial Organization First Midterm...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online