{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Quiz 4 Ec21 S2013.pdf

Quiz 4 Ec21 S2013.pdf - Dartmouth ID(not name Economics 21...

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

View Full Document Right Arrow Icon
Page 1 of 8 Dartmouth ID ( not name): ___________________________ Economics 21 Spring 2013 Quiz 4 Instructions: Show all your work! (no credit for correct answers unless the intermediate steps are shown) You can earn 45 points in total. All items (including the axes) in a graph need to be labeled to get full credit There is a page at the end in case you need additional space Do not remove the staple or tear out pages Books, notes, your own calculators or cell phones are not allowed. You are only allowed to use the calculator provided by me. Good luck!
Background image of page 1

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

View Full Document Right Arrow Icon
Page 2 of 8 1. Short Answer Questions (15 points) a. Define “natural monopoly”: b. Define “Bertrand equilibrium” (if you use jargon in your definition, be sure to define those terms too): c. Define “minimum efficient scale”:
Background image of page 2
Page 3 of 8 d. True / False / Uncertain. “Subsidizing the output of a monopoly reduces DWL.” Explain why . e. Suppose a monopoly “by accident” operates in the inelastic part of the demand curve. Which is the case: (A) it is maximizing profits; (B) it can it increase profits by producing more; or (C) can it increase profits by producing less? Explain which is the case, and why.
Background image of page 3

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

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

{[ snackBarMessage ]}