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Unformatted text preview: LOUISIANA STATE UNIVERSITY ECONOMICS 2030 FALL 2009: EXAM 2 SIGNATURE: NAME: LAB MEETING DAY: WEDNESDAY FRIDAY LAB MEETING TIME: 12:40 1:40 2:40 LAB INSTRUCTOR: HOUSTON UNLU ZENG VERSION B INSTRUCTIONS 1. Read these instructions carefully and DO NOT TURN THIS PAGE until you are told that you may begin the examination. Fill in the information in the blank spaces above, signing your name where it says "SIGNATURE" and printing your name where it says "NAME." In addition, CIRCLE your lab meeting day, time, and lab instructor's name. 2. The only materials you may use on the exam are a pencil, an eraser, a highlighter, and a small scantron (Form no. 882-E). You may NOT use calculators, other electronic devices, scrap paper, or any other materials. Please place all unusable items in a closable receptacle, close the receptacle, and place that under your seat. All electronic devices must be turned off for the duration of the exam. 3. On your scantron please print the following information: Name, Lab Instructor's Name, Lab Section Number, and Test Version Letter. 4. Each question is worth 0.80 points. Each question has only one correct answer: MARK your choice clearly on your scantron:-Any question on which a single answer is not marked clearly will be considered incorrect. 5. To sit for the exam you must have a valid LSU STUDENT ID card. Please place it on your desk where it can be seen and leave it there for the duration of the exam. 6. Once the instructor begins to distribute the exam you may not talk. If you have a question, raise your hand. The question will be answered by the instructor. 7. • You have 50 minutes in which to complete the exam. If you finish early, please remain seated and raise your hand. An instructor will collect your test, after which you may leave the room. Please do so quietly. 8. By signing this cover sheet you acknowledge that you have read, understood, and agreed to the conditions enumerated in this Ust of instructions. Violations of the exam instructions will be treated as a violation of the Code of Student Conduct and dealt with in accordance with the Code. L — — 1. Suppose, at a given point in time, Tammy's Tea Room is operating in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production its average total cost of producing tea is $11, average variable cost is $9, and marginal revenue is $9. At this moment Tammy is earning economic profits. Over time, everything else held constant, the number of sellers in this market will . A) positive; decrease B) negative; increase f >•' . ^" C) negative; decrease D) zero; remain unchanged E) positive; increase 2. Answer true or false to the following statement. Product differentiation in a monopolistically competitive market means that each firm in the market could be earning different levels of economic profit in the long run....
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This note was uploaded on 03/22/2011 for the course ECON 2030 taught by Professor Bong during the Spring '07 term at LSU.
- Spring '07