ECN100 Final S09 Parman

ECN100 Final S09 Parman - Ecn 100 Intermediate...

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Ecn 100 - Intermediate Microeconomic Theory University of California - Davis June 11, 2009 Instructor: John Parman Final Exam You have until 8pm to complete the exam, be certain to use your time wisely. For multiple choice questions, mark your answer on your scantron sheet. Choose only the single best answer for each multiple choice question; if more than one letter is filled in for a question it will be marked wrong. For the short answer questions, write your answers directly on the exam. Show your work clearly, place a box around final answers and be certain to label any graphs you draw. Final answers may be left as fractions. Non-graphing calculators may be used. Good luck! Name: ID Number: Section: SECTION I: MULTIPLE CHOICE (60 points) 1. If a firm’s cost function exhibits increasing returns to scale: (a) Total costs will be lower as the level of output gets larger. (b) Average costs will be lower as the level of output gets larger. (c) Both (a) and (b). (d) Neither (a) nor (b). 2. If AC (10) < AC (11), then (note: the numbers represent units of output): (a) MC (10) < AC (10). (b) MC (10) > AC (10). (c) MC (10) = AC (10). (d) MC (10) = MC (11). 3. The slope of a consumer’s budget line depends on: (a) The prices of the goods and income. (b) Income only. (c) The marginal utilities of the goods. (d) The relative prices of the goods. 4. If two inputs are perfect substitutes in production, a profit-maximizing firm will: (a) Use them in fixed proportions. (b) Use only the input with the larger marginal product relative to its price. (c) Use only the input with the smaller marginal product relative to its price. (d) Use equal amounts of the inputs. 5. Which of the following statements is true? (a) Profits for a competitive firm are positive in the long run. (b) Profits for a monopoly are always negative at the socially efficient price and quantity. (c) Profits for a monopoly are always positive at the socially efficient price and quantity. (d) None of the above.
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2 Final Exam 6. A monopolist will tend to earn higher profits under than it would under . (a) First degree price discrimination, third degree price discrimination. (b) Third degree price discrimination, first degree price discrimination. (c) Second degree price discrimination, first degree price discrimination. (d) Both (b) and (c). 7. If two bundles are on the same indifference curve, they: (a) Both give a consumer the same level of utility. (b) Both cost the same amount. (c) Are both in a consumer’s budget set. (d) Both have the same marginal utility for x and the same marginal utility for y . 8. If a firm uses only capital and labor as inputs and the level of capital is fixed in the short run, the firm will choose a short run level of labor for which: (a) The marginal product of labor is equal to the price of output divided by the wage. (b) The marginal product of labor is equal to the wage divided by the price of output.
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This note was uploaded on 10/22/2010 for the course ECN 100 taught by Professor Parman during the Fall '08 term at UC Davis.

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ECN100 Final S09 Parman - Ecn 100 Intermediate...

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