This preview shows pages 1–2. 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: Econ 100B (Grossman)Winter 2010 Midterm 2Answers to free-response questions February 18, 2010 Blue-book 25 out of 50 pts. (2 qns., 12 pts. each + 1) Answer these questions in your blue-book. Show your work and intermediate steps for partial credit. Points are split equally across all sub-parts. Your score will only be based on the marks in your blue-book. You will not receive any credit for anything written on your exam paper. You will receive 1 point for correctly writing your name, perm number, version (A,B,C, or D), and TAs name on your blue-book. 1. Recall Natch.com from the multiple choice part, specifically The desperate customers demand for profiles is p d = 40- 2 q d The not-desperate customers demand is p n = 20- 2 q n There is exactly one of each kind of customer The marginal cost of providing a profile is zero (a) Under the pricing scheme from multiple-choice question 6where the company sells the two packages of profileswhat are the companys profits?packages of profileswhat are the companys profits?...
View Full Document
This note was uploaded on 03/17/2010 for the course ECON 100B taught by Professor Kilenthong during the Spring '08 term at UCSB.
- Spring '08