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Name:_____________________________ Student #___________________ MICROECONOMICS 1014-01 EXAM 3 4/20/2016 VERSION: 007 Please do not begin the exam until you are told to. You have 60 minutes to finish the exam. When the time is up do not write anything more on the scantron. On the scantron sheet, fill in NAME and STUDENT NO. Only pencil, erasers, both sides of one 8.5 x 11 cheat sheet, and a standard function calculator may be used on this exam. No other devices are allowed. You may not use the calculator on your cell phone. Fill all answers on your scantron. No answers will be accepted unless they have been filled into the scantron.
1 Version:007 TWAG!! 1. Suppose that an industry consists of a two-firm cartel: Firm A and Firm B. Each firm agrees to produce and sell only 100 units of output per week. This level of output maximizes total industry profit. Which of the following is TRUE? A) Firm B could increase its profits by producing and selling only 90 units of output per week. B) If both firms simultaneously choose to cheat on the cartel agreement and expand output, then the profits for both firms will increase. C) Firm B could increase Firm A's profits by producing and selling 10 percent more output. D) Firm A could increase its profit by producing and selling a little more than 100 units of output. 2. Even when gas stations and grocery stores are close enough to share a parking lot, gas stations will typically charge much more for candy bars. This kind of price discrimination occurs because grocery store patrons have: 3. Which of the following statements is TRUE?
2 Use the following to answer questions 4-5. Table: Excellence Publishing Number Of Workers Per Year Number Of Books Edited Per Year 416,000519,000621,200722,800823,700924,200