Midterm2_f06 - Midterm 2 Economics 304K: Principles of...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Midterm 2 Economics 304K: Principles of Microeconomics Prof. Meg Ledyard Fall 2006 50 Min. Name _____________________ UT EID ____________________ You have 50 min for the exam. There are a total of 100 points. You may NOT use calculators or other aids. You may leave any fractions un-simplified. Please show all of your work on the following pages. If you need more space, please use the back. Properly label all graphs. You should have 7 pages including this one. Please count them to be sure. Make sure that you include your test form on your multiple choice answer sheet in the box labeled TEST FORM. (4 Points)
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 Question 1 (20 points) Suppose that Hiro is the Monopoly producer of swords. a. (15 points) In a diagram below, show the following: Label the quantity the monopolist will produce as QM. Label the price the monopolist will charge as PM. Label the efficient quantity (the one that maximizes total surplus) as Qeff. Label the monopolist’s profits. Label the Dead Weight Loss that occurs if the monopolist makes the profit maximizing quantity. b.(5 points) What is Hiro’s profit maximizing condition?
Background image of page 2
3 Question 2 (20 Points) Suppose that the market for coconuts is perfectly competitive. Captain Jack owns a firm in the coconut industry. Suppose that in the winter, people hate coconuts and the price is PL. In the summer people love coconuts and the price is PH.
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/18/2008 for the course ECON 304K taught by Professor Ledyard during the Spring '08 term at University of Texas at Austin.

Page1 / 7

Midterm2_f06 - Midterm 2 Economics 304K: Principles of...

This preview shows document pages 1 - 4. Sign up to view the full document.

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