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

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

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

View Full DocumentRight Arrow Icon
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: A) EFJS. B) EGHS. C) FGLK. D) 0 GHB. 3. The marginal revenue received by a firm in a perfectly competitive market: A) is equal to the market price. B) is greater than the market price. C) increases with the quantity of output sold. D) is less than the market price.
Background image of page 2
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. A) lower demand B) less price-elastic demand C) more price-elastic demand D) greater demand 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 A) price will decrease and quantity will increase. B) price and quantity will increase. C) price and quantity will decrease. D) price will increase and quantity will decrease.
Background image of page 3

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

View Full DocumentRight Arrow Icon
7. The long run industry supply curve in a perfectly competitive industry is upward sloping when A) sellers have different cost structures. B) buyers have different willingness to pay. C) sellers have the same cost structures. D) buyers have the same willingness to pay. Use the following to answer question 8: Figure: Monopolistic Competition II 8. (Figure: Monopolistic Competition II) The figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Pat's Pizza Parlor, a monopolistic competitor in the food-to-go industry. In the long run, the demand curve facing Pat's Pizza Parlor will shift to the ________ as its competitors ________ the market. A) left; leave
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

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

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online