Final Examination
Applied Economics 3002
Applied Microeconomics: Managerial Economics
December 19, 2013
Name: __________________________________________________

1
Name:
Score:
/ 172 Points
A. Multiple Choice. Choose the bestanswer from the alternatives by circling the letter (a, b, c, ...) of your choice.[21 Points] A.1 In a competitive industry, the product demand function for an individual firm is while the industry or market demand function is
.
a. downward sloping, horizontal c. the marginal cost function, U-shaped b. positively sloped, negatively sloped d. horizontal, negatively sloped
A.2 A change in technology will shift:
A.3 Relative to the competitive price and quantity, the monopolist will charge a price and sell a quantity.
As an investment criterion, the payback period can be criticized for
A.5 The weighted average of all possible outcomes of a project, with the probabilities of the outcomes used as weights, is known as the
a. variance. c. expected value. b. standard deviation. d. coefficient of variation.
A.6 Which of the following is nota generally accepted measure of riskiness of an investment?
A.7 Suppose a production plan results in profit of $50,000 or $150,000, each with a probability of 0.5. decision maker who would prefer a risk free profit of $75,000 to the risky production plan is considered:
A