AnswerstoMCforFinalExamDEC13.2007

AnswerstoMCforFinalExamDEC13.2007 - 1 ECMC02H3 ANSWERS TO...

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1 ECMC02H3 ANSWERS TO THE FINAL EXAM – December 13, 2007 Time: 3 hours Professor Gordon Cleveland ______________________________________ ____________________ Your name (Print clearly and underline your last name) Your student number This exam consists of multiple choice questions and short answer questions. There are 25 multiple choice questions, each worth 3 marks, which are to be answered on the front sheet of this exam in the spaces provided. If two multiple choice answers seem reasonable, choose the best possible answer. There are three short answer questions at the end of this exam paper. Space is provided to answer those questions directly on this exam paper. Your exam consists of 17 pages (counting this first page). Please count your exam's pages immediately and report any problems. FILL IN YOUR NAME NOW. 1. _ I _____ 6. Z ($5,000) 11. _ I _____ 16. __ I _____ 21. __ C ____ 2. _ M ____ 7. __ E ____ 12. _ F _____ 17. __ R ___ 22. __ E ____ 3. __ U___ 8. _ T ____ 13. _ A _____ 18. __ O ___ 23. __ Z ____ 4. __ U ___ 9. __ I ___ 14. __ A ____ 19. __ O ___ 24. __ A ____ 5. _ M _____ 10. _ D ____ 15. __ C ____ 20. __ N ____ 25. __ W _____
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2 PART I - 25 Multiple Choice Questions – 3 marks each. 1-3. There are a group of 20 citizens; 4 of them are 10 years of age, 4 are 30 years of age, 4 are 50 years of age, 4 are 70 years of age, and the final 4 are 90 years of age. A new video game is available on the market; each of the 20 citizens is willing to pay $100 minus his or her age (in dollars) to get this video game and each will buy only one copy of the game. For example, the 10-year-olds are willing to pay $90 for the game ($100 - $10), and so on. There is a single monopoly firm, which has a total cost of producing video games given by TC = 160 + 40Q, with Q representing the quantity of video games produced. You can use this information to answer questions 1 to 3. 1. If this monopoly firm charges the same price to all its customers (i.e., a single-price monopolist), how many customers will it serve in order to maximize profit? A) 0 B) 1 C) 2 D) 3 E) 4 F) 5 G) 6 H) 7 I) 8 J) 9 K) 10 L) 11 M) 12 N) 13 O) 14 P) 15 Q) 16 R) 17 S) 18 T) 19 U) 20 V) 21 W) 22 X) 23 Y) 24 Z) none of the above 2. If this firm is able to perfectly price discriminate, how many customers will it serve in order to maximize profit? A) 0 B) 1 C) 2 D) 3 E) 4 F) 5 G) 6 H) 7 I) 8 J) 9 K) 10 L) 11 M) 12 N) 13 O) 14 P) 15 Q) 16 R) 17 S) 18 T) 19 U) 20 V) 21 W) 22 X) 23 Y) 24 Z) none of the above 3. If this firm is able to perfectly price discriminate, what will be the amount of profit it earns when it is maximizing profit? A) $0 B) $10 C) $20 D) $30 E) $40 F) $50 G) $60 H) $70 I) $80 J) $90 K) $100 L) $110 M) $12 0 N) $130 O) $140 P) $150 Q) $160 R) $170 S) $180 T) $190 U) $200 V) $210 W) $220 X) $230 Y) $240 Z) none of the above
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3 4-6. In the competitive market for cut flowers, demand is given by P = 200 – 0.1Q and supply is given by P = 20 + 0.05Q.
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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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AnswerstoMCforFinalExamDEC13.2007 - 1 ECMC02H3 ANSWERS TO...

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