Answers to Sample Midterm Questions

Answers to Sample Midterm Questions - Answers for the...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Answers for the sample midterm questions. Multiple Choice: 1. B 2. C 3. A 4. C 5. D 6. A The point here is that while both surveys cost the same and you get the same number of returned surveys either way, the selection problem will probably be worse for the normal mail (40%) than the registered mail (80%). A 80% sample of the population will likely be more representative of the population as a whole than a 40% sample. 7. F 1 a) When we can set separate two part tariffs to both students and faculty, we can consider the two markets completely independently. In each market, we have a group of identical consumers, so the optimal two-part tariff involves charging p=mc and T=the consumer surplus at that price. So: For the students, set p = 0, T = 100 For the faculty, set p = 0, T = 400
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern