This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Sample Questions for Final: Part 1 - Multiple Choice 1) Suppose you are negotiating with a contractor over the price of the project and the amount of time it will take to get the project done. You prefer a lower price and less time, the contractor prefers the reverse. Suppose the current offer on the table is $10000 for the project to be completed in 10 weeks. The contractor mentions that he can save $1000 if he gets an extra week to complete the project. It costs you $500 in lost profits if the project takes a week longer to complete. You should probably suggest: A. A contract with a higher price and longer time to completion. B. A contract with a higher price and shorter time to completion. C. A contract with a lower price and longer time to completion. D. A contract with a lower price and shorter time to completion. 2) Suppose you are negotiating with a dealer over a car you would like to buy. You are in a better negotiating position if the dealer has a ___________ patience level and a __________ reservation value (Rs). A. low // low B. low // high C. high // low D. high // high 3) Angel investors typically fund _________ investments than venture capitalists. They also tend to finance projects that will cash out _______ quickly. A. smaller // less B. smaller // more C. larger // less D. larger // more For 4) and 5), consider the following demand curve that exhibits network externalities: Q = 20 - 10P + 0.5Q 4) The slope of the "conditional" demand curve (i.e. the demand curve conditional on some expected number of total sales is: ____________ (fill in the blank) 5) The slope of the overall demand curve is: ____________ (fill in the blank) Part 2 - True, False, or Uncertain. Be sure to provide a brief but clear explanation of your rationale. Credit will be given to the extent that the explanation is correct and complete. Write answer in the space provided....
View Full Document
This note was uploaded on 09/03/2009 for the course ECON 106E taught by Professor Ackerberg during the Spring '08 term at UCLA.
- Spring '08