ECON_203_Mock_Final_Fall_2006

ECON_203_Mock_Final_Fall_2006 - ECON 203 Mock Final Fall...

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ECON 203 Mock Final Fall 2006 Brijesh Pinto Please read all the questions carefully. Every question has only one correct (most relevant) answer. You have up to 1.5 hours to complete the examination. Most questions will test your knowledge of chapters 9, 10, 11 and 12. The remaining will test basic concepts that are relevant to these chapters. Student Name _____________________________ Discussion Session__________________________ TA Name__________________________________ 1. In monopoly situations A. The demand curve faced by the firm is identical to the market demand curve for the product. B. The demand curve faced by the firm is always identical to the market demand curve for a substitute product. C. The demand curve faced by the firm is steeper ( has greater absolute value of slope ) than the market demand curve for the product. D. The demand curve faced by the firm is always horizontal. 2. Demand for a good is likely to be more elastic: A. the smaller the fraction of consumer income absorbed by the good. B. in the short run than in the long run. C. the more broadly defined the good. D. the greater the number of available substitutes for the good. 3. In a monopoly A. Marginal revenue is always less than price. B. Marginal revenue is less than price only at the profit-maximization rule. C. Marginal revenue is always equal to price. D. Marginal revenue is constant. 4. Marginal revenue is defined as A. The change in total cost that results from a one-unit increase in the quantity sold. B. The change in total profit that results from a one-unit increase in quantity sold. C. The change in total revenue that results from a one-unit increase in product price. D. The change in total revenue that results from a one-unit increase in the quantity sold. 5. When the demand curve is non-horizontal, in particular, when it is downward sloping A. The MR curve intersects the demand curve in at least two points. B. The MR curve doesn’t intersect the demand curve. C. The MR curve always lies below the demand curve. D. The MR curve is vertical.
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6. When total revenue is increasing: A. marginal revenue may be either positive or negative. B. the demand curve is relatively inelastic. C. marginal revenue is positive. D. marginal revenue is negative. 7. If some firms leave a monopolistically competitive industry, the demand curves of the remaining firms will: A. be unaffected B. shift to the left. C. become more elastic. D. shift to the right. 8. A Monopoly Franchise is A. the exclusive right given to a single firm to produce and supply a particular good or service . B. the exclusive right given to a single firm to supply a particular good or service even though other firms can produce it. C. the exclusive access given to a single firm to the key inputs of a particular good.
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This note was uploaded on 04/20/2008 for the course ECON 203 taught by Professor Al-sabea during the Fall '05 term at USC.

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ECON_203_Mock_Final_Fall_2006 - ECON 203 Mock Final Fall...

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