Answers.Version1TestNov1.2008.ECMC02_000 -...

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Answers to Midterm Test ECMC02, November 1, 2008 Version 1 of Test 1. The Gain to Society is $240,000.  The correct answer is (S). 2. The deadweight loss is $9,600.  The correct answer is (K). 3. The deadweight loss will increase by $120,000.  The correct answer is  (N). 4. The city would have to pay taxi drivers $90,000.   The correct answer  is (Z) – none of the above. 5. This question should have said that the demand curve is P = 3/Q 0.5 Then the correct answer would have been a price of $20.  However,  with the question written as it is, the correct answer is (Z) – none of  the above. 6. The Cournot price will be $520.  The correct answer is (O). 7. The Stackelberg price is $460.  The correct answer is (L). 8. Deadweight loss rises by $5,040.  The correct answer is (F). 9. The Cournot price, with different costs, is $560.  The correct answer  is (P). 10. The price-discriminating price in Market #1 will be $1100.  The 
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This note was uploaded on 04/21/2011 for the course ECMC 02 taught by Professor Cleveland during the Fall '08 term at University of Toronto- Toronto.

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Answers.Version1TestNov1.2008.ECMC02_000 -...

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