Midterm2ans - ECON 203 SPRING 2011 Intermediate...

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ECON 203 – SPRING 2011 Intermediate Microeconomics. Midterm 2 Thursday March 24 th , 2011 – 50 Minutes. VERSION A This midterm consists of two parts. Part 1 contains NINE multiple-choice questions that are worth 2 marks each for a total of 18 marks. Part 2 has ONE long-answer question that is worth 32 marks. In total you can earn 50 marks. Fill out your name, student number and lab section before you start. Good luck! Name:……………………………………………………………………………………………. Student Number:………………………………………………………………………………… Lab Section:……………………………………………………………………………………… PART 1: MULTIPLE-CHOICE QUESTIONS (18 marks) Q1. For a competitive firm, the output level where MC = AVC is called the A) shutdown point. B) break-even point. C) profit-maximizing point. D) point of inflection. Ans: A Q2. In the long run, for a competitive firm in a constant cost industry, which of A to D is false? A) the firm is at the lowest point on its short run average cost curve. B) the firm is at the lowest point on its long run average cost curve. C) marginal cost equals price. D) short run marginal cost equals long run average cost. E) all of A to D are true. Ans: E Q3. For a profit-maximizing monopolist selling in two separate markets, it is necessarily true that A) MC = MR in both markets. B) the market with the less elastic demand contributes more to total profits.
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This note was uploaded on 08/03/2011 for the course ECON 203 taught by Professor Okhan during the Spring '11 term at University of Victoria.

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Midterm2ans - ECON 203 SPRING 2011 Intermediate...

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