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Unformatted text preview: Sample Final Examination Economics 101 December 6, 2007 Abstract This examination is a closed-book examination. You should not need any tools beyond a pencil or pen to write the answers. Calculators, cellphones, and other devices with memory are prohibited. Please write your answers directly on this examination paper. Don’t forget to write your name and student number on each sheet (booklets occasionally do come apart in transport). You should take the amount of whitespace allocated to an answer as a hint as to the kind and quantity of answer expected. However, partial credit will be granted and you may continue answers on the back of a sheet. Continuations must be clearly marked . Do not open this examination booklet until instructed to do so. 1 1. The graph in Fig. 1 is supposed to depict a monopolist with constant marginal costs. Find and explain one error in the graph. Explain what the graph should look like to be consistent with microeconomic theory. (There is at least one error.) 20 40 60 80 100 5 10 15 20 25 30 35 40 MR D MC AV C Figure 1: Monopolist with constant MC 2. Recently spun-off Pitney Bowes Oﬃce Services Inc. (formerly the fax and copier division of Pitney Bowes Inc.) signed a contract with a Canadian firm called CGI Group to provide $25 million of IT services over 5 years. As the manager of Pitney Bowes Oﬃce Services, justify the long-term nature of the contract....
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- Fall '07
- Economics, japan, Sweezy, Pitney Bowes Office Services, Pitney Bowes Inc., Pitney Bowes Office Services Inc.