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# Exam_3-1 - NAME TEST FORM 1 Exam#3 DO NOT OPEN UNTIL...

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NAME ________________________ TEST FORM: 1 Exam #3 DO NOT OPEN UNTIL INSTRUCTED TO DO SO - Fill in your name at the top of this page and on your bubble sheet - Fill in your student ID, section and test form 1 on your bubble sheet

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Exam 3 Directions: Please choose the best answer for each question. There is no penalty for wrong answers. Thus, if you do not know the answer, it will not hurt you to guess. Use the following to answer questions 1-2: Figure: A Perfectly Competitive Firm in the Short Run 1. (Figure: A Perfectly Competitive Firm in the Short Run) The firm's total revenue from the sale of its most profitable level of output is: A) 0 GHB. B) DL. C) 0 GLD. D) BH. 2. (Figure: A Perfectly Competitive Firm in the Short Run) If market price is G, the firm's total economic profit at its most profitable level of output is: 3. The marginal revenue received by a firm in a perfectly competitive market:
4. Amtrak charges lower fares to students than to their other passengers. This pricing strategy increases Amtrak's profits. From this information, we can conclude that students must have ________ for Amtrak train service than other passengers. Use the following to answer question 5: 5. (Table: Demand for Wooden Stakes) The table shows the demand for wooden stakes in the town of Sunnyvale. Suppose the marginal cost of producing stakes is zero. The only two firms producing wooden stakes, Spike Inc. and Buffy Co., agree to produce only 50 stakes, with each firm producing only 25. By how much does Buffy's profit rise if she cheats on the agreement and produces 30 stakes? A) \$270 B) \$20 C) \$50 D) \$300 6. Consider the market for Ramen noodles (an inferior good). Suppose that consumer incomes increase. In the new equilibrium

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Exam_3-1 - NAME TEST FORM 1 Exam#3 DO NOT OPEN UNTIL...

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