finreview

finreview - Review for final exam Tuesday July 27 QUESTION...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
Review for final exam Tuesday, July 27
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
QUESTION 1 (discrete, perfect competition) The consumer benefit schedule is given by the table. If marginal cost is constant at MC = 9, and the market is perfectly competitive, then what quantity will be bought and sold in equilibrium? Q TB 1 20 2 38 3 54 4 68 5 80 6 90 7 98 A) 2 B) 3 C) 4 D) 5 E) 6
Background image of page 2
answer to question 1 The consumer benefit schedule is given by the table. If marginal cost is constant at MC = 9, and the market is perfectly competitive, then what quantity will be bought and sold in equilibrium? Q TB MB 1 20 20 2 38 18 3 54 16 4 68 14 5 80 12 6 90 10 7 98 8 A) 2 B) 3 C) 4 D) 5 E) 6
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
QUESTION 2 (perfect competition) If marginal cost is constant at MC = 9, and the market is perfectly competitive, then what is the consumer surplus in equilibrium? Q TB MB 1 20 20 2 38 18 3 54 16 4 68 14 5 80 12 6 90 10 7 98 8 A) 18 B) 36 C) 12 D) 42 E) 60
Background image of page 4
answer to question 2 If marginal cost is constant at MC = 9, and the market is perfectly competitive, then what is the consumer surplus in equilibrium? 90 6 × 9 = 90 54 = 36 Q TB MB 1 20 20 2 38 18 3 54 16 4 68 14 5 80 12 6 90 10 7 98 8 A) 18 B) 36 C) 12 D) 42 E) 60
Background image of page 5

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

View Full Document Right Arrow Icon
QUESTION 3 (perfect competition) If marginal cost is constant at MC = 9, and the market is perfectly competitive, then what is the producer surplus in equilibrium? Q TB MB 1 20 20 2 38 18 3 54 16 4 68 14 5 80 12 6 90 10 7 98 8 A) 4 B) 90 C) 0 D) 10 E) 36
Background image of page 6
answer to question 3 If marginal cost is constant at MC = 9, and the market is perfectly competitive, then what is the producer surplus in equilibrium? Q TB MB 1 20 20 2 38 18 3 54 16 4 68 14 5 80 12 6 90 10 7 98 8 A) 4 B) 90 C) 0 D) 10 E) 36
Background image of page 7

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

View Full Document Right Arrow Icon
QUESTION 4 (price floor) If marginal cost is constant at MC = 9, and the government imposes a price floor (minimum price) at P = 11, what will the quantity be in the new equilibrium? Q TB MB 1 20 20 2 38 18 3 54 16 4 68 14 5 80 12 6 90 10 7 98 8 A) 2 B) 3 C) 4 D) 5 E) 6
Background image of page 8
answer to question 4 If marginal cost is constant at MC = 9, and the government imposes a price floor (minimum price) at P = 11, what will the quantity be in the new equilibrium? Q TB MB 1 20 20 2 38 18 3 54 16 4 68 14 5 80 12 6 90 10 7 98 8 A) 2 B) 3 C) 4 D) 5 E) 6
Background image of page 9

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

View Full Document Right Arrow Icon
QUESTION 5 (price floor) If marginal cost is constant at MC = 9, and the government imposes a price floor (minimum price) at P = 11, how much deadweight loss will result from the price floor? Q TB MB 1 20 20 2 38 18 3 54 16 4 68 14 5 80 12 6 90 10 7 98 8 A) 10 B) 80 C) 1 D) 5 E) 45
Background image of page 10
If marginal cost is constant at MC = 9, and the government imposes a price floor (minimum price) at P = 11, how much deadweight loss will result from the price floor? The 6 th unit, which is not sold given the price floor, had a marginal benefit of 10, and a marginal cost of 9. Q
Background image of page 11

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

View Full Document Right Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 44

finreview - Review for final exam Tuesday July 27 QUESTION...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online