Ex3As10 to Post

Ex3As10 to Post - ECONOMICS 202 EXAM 3A SPRING 2010 ANSWER...

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ECONOMICS 202 – EXAM 3A – SPRING 2010 ANSWER THE NEXT 9 QUESTIONS USING THESE OPTIONS: 1. Oligopoly; 2. Perfect Competition; 3. Monopoly; 4. Monopolistic Competition 1. In which market structure(s) are both producers and consumers price-searchers? a. 1; b. 2; c. 3; d. 1 and 2; e. none above 2. The short-run shut-down rule is applicable in: a. 1; b. 2; c. 3; d. 4; e. all above. 3. In this market structure there is a large number of sellers, the product of each seller has many good, but not perfect substitutes and in the long-run economic profits = 0. a. 1; b. 2; c. 3; d. 4; e. none above 4. In which market structure is it true that, “if TR > TC, then economic profits > 0, and normal profits > 0? a. 1; b. 2; c. 3; d. 4; e. all above 5. In both the short-run and long-run in _____ , the firm produces a quantity at which P > MC. a. 1; b. 3; c. 4; d. all above; e. none above 6. In this industry an important feature is mutual interdependence among firms. a. 1; b. 2; c. 3; d. 4; e. none above 7. In this industry the firm’s demand curve is also the market demand curve. a. 1; b. 2; c. 3; d. 4; e. 2 & 3. 8. In this industry, in the long-run economic profits = 0. a. 1 & 2; b. 2 & 3; c. 3 & 4; d. 2 & 4; e. none above 9. In this industry, firms have some degree of monopoly power. a. 1 & 2; b. 2 & 3; c. 1, 2 & 3; d. 1, 3 & 4; e. 1, 2, 3 & 4 10. If an airline is charging different fares to different customers who are flying to the same destination and sitting in the same class, this is an example of: a. a collusive cartel; b. price discrimination; c. a barrier to entry; d. covering variable costs; e. kinked demand. 11. Ignoring the shut-down option, in perfect comp. the loss minimizing rule is: produce the quantity where: a. MC = ATC; b. MR = P; c. MC = MR; d. P = AVC; e. none above ANSWER THE NEXT QUESTION BY IDENTIFYING THE APPROPRIATE SET FROM THESE EIGHT OPTIONS: 1. AVC = S; 2. P = ATC MIN ; 3. P = MC; 4. P > MR; 5. P = AVC MIN ; 6. QS = QD; 7. Ec Profits > 0; 8. Ec Profits = 0; 12. The long-run equilibrium conditions in perfect competition are: a. 2, 3, 5, 6; b. 1, 4, 6, 8; c. 2, 3, 6, 8; d. 2, 3, 5, 8; e. none above. 13. In all market structures (environments) it is assumed the objective of the firm is to: a. maximize total revenue; b. minimize total costs; c. maximize marginal economic profits; d. maximize total economic profits; e. a, b and d.
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This note was uploaded on 02/13/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

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Ex3As10 to Post - ECONOMICS 202 EXAM 3A SPRING 2010 ANSWER...

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