{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Final review extra questions

Final review extra questions - Econ 1101 This document...

This preview shows pages 1–4. Sign up to view the full content.

1 Econ 1101 This document contains example multiple choice questions on material covered in weeks 11-15. A monopolist faces the demand curve illustrated below. Draw the marginal revenue (MR) curve on the graph. Suppose the marginal cost (MC) and average variable cost (AVC) both equal 6 for all quantity levels, MC = AVC = 6. Draw the MC curve in the graph. -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 111213 1415 1617 181920 2122 2324 D \$ Q 1. Marginal revenue equals zero at what quantity level? a) Q = 0 b) Q = 6 c) Q = 9 d) Q = 12 e) Q = 18 2. At the quantity where Marginal Revenue equals zero 3. Assume the fixed cost equals zero. The profit maximizing monopoly price equals

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

View Full Document
2 4. Again, assuming the fixed cost equals zero, the monopoly profit equals equals 5. Suppose the fixed cost can be avoided if the firm shuts down and produces zero. At what fixed cost is the firm indifferent between producing and shutting down? a) 10 b) 12 c) 14 d) 16 e) 18 6. Again, suppose the fixed cost equals zero. What is the monopoly profit if the firm can perfectly price discriminate? 7. Some prescription drugs sell for more in the United States than they do in other countries. Which of the following statements about this issue is most likely to be true?

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 6

Final review extra questions - Econ 1101 This document...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online