Mid11w - Economics 302 Mid-Term Examination Instructor Greg LeBlanc Date February 9 2011 PART A(Worth one third of the marks budget one third of

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 302 Mid-Term Examination Instructor: Greg LeBlanc Date: February 9, 2011 PART A (Worth one third of the marks, budget one third of your time) Choose any TWO out of the following THREE. 1. All price—taking f rms in a competitive industry have access to the technology C ( y i )= 8+12 y i +2 y 2 i . Derive a typical f rm’s short—run supply curve and show it on a graph. Derive the long—run supply curve for this industry based on free entry and price—taking behaviour, and show this curve on a graph. What would determine the number of f rms in the industry? 2. In a Stackelberg industry with identical f rms we know that f rm 1, the leader, produces its monopoly quantity in equilibrium. Given this, does the Stackelberg leader necessarily earn a higher pro f t than the Stackelberg follower? Explain. 3. Suppose that a monopolist has the ability to impose a two-part tari f pricing policy. Would it necessarily set a positive fee as part of its pro
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/14/2011 for the course ECON 302 taught by Professor Dont know during the Spring '11 term at Concordia Canada.

Page1 / 2

Mid11w - Economics 302 Mid-Term Examination Instructor Greg LeBlanc Date February 9 2011 PART A(Worth one third of the marks budget one third of

This preview shows document pages 1 - 2. Sign up to view the full document.

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