Test3_practicequestions(1)

Matinee012126519 3 18424 t 01

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Unformatted text preview: (!'230/2+24*12&4!23! $ ! C) The!!g(--24%!0&40(/1!1205(13esold. $# 3 ood cannot be easily r !1&!24'262'7*-3!&4!18(!31/((1!0&/4(/9! D) All !! f7<24%!0&40(/1!1205(13!*1!18(!1205(1!=24'&=9! :# o the above. ; >#!! (--24%!0&40(/1!1205(13!*1!18(!1205(1!=24'&=9! 3 53. When firms price discriminate they turn ________ into ________. ; A) p?#!! 7<24%!*!0&40(/1!1205(1!&4!18(!31/((1!0&/4(/9! roducer surplus, revenue > B)$43=(/@!!! ! urplus, profit consumer s C)!"#$%&!!! ost, p!rofit !,$-%)$.$/0+$"/! total '()*(%+ ')$%( c ' D)12(-+$"/!3+0+2-&!!! )(4$"2-!56$+$"/! producer surplus, consumer surplus A#4. Theatres charge l!ower prices for a*!+*/5(1!nd u!*-3&!,(/.(01-<!,/20(oupons for the night !=(-.*/(! B 5 !! 8(4!*!.2/+!8*3 *!+&4&,&-<!24! matinee a*4' sually donʹt accept c !'230/2+24*1(3C!1&1*showing23!f movies because $#!! o +*)2+2D('9! A) consumers that attend!*he matinee!0&+,(12126(!+*/5(19! :#!! 3!-&=(/!18*4!24 t !,(/.(01-< have a higher price elasticity of demand. 2 B) consumers that attend the night show have a lower price elasticity of demand. >#!! 3!82%8(/!18*4!24!*!,(/.(01-<!0&+,(12126(!+*/5(19! 2 C) it increases profits compared to charging a single price. ?#!! 3!t+242+2D('9! 2 D) All of he above. $43=(/@!!! ! $ !"#$%& erfect price ! iscriminator ' 55. A p!!! ()*(%+!')$%(d,$-%)$.$/0+$"/! A)12(-+$"/!3+0+2-&b')(4$"2-!56$+$"/! charges each !!! uyer her reservation price. B) charges different prices to each customer based upon different costs of delivery. C)F ! enerates ! d 0&41/&--('!;< o society. E#!! .g*!+*/5(1a23!eadweight loss !t*!,(/.(01",/20("'230/2+24*124%!+&4&,&-<C!18(4! D) c$#!! !'(*'=(2%81!-&33c23!%(4(/*1('9!buy greater quantities. harges lower prices to !ustomers who * :#!! 8(/(!23!4&!0&437+(/!37/,-739! 1 56. A perfect price discriminating equilibrium maximizes >#!! &437+(/!37/,-73!23!18(!3*+(!*3!74'(/!,(/.(01!0&+,(1212&49! 0 A) consumer surplus. ?#a&71,71!23 -(33!18*4!18*1!&. B) the !!ssociated !deadweight loss. !*!324%-(",/20(!+&4&,&-<9! : C)$43=(/@!!! ! inefficiency. the market D)!"#$%&!!! ()*(%+!')$%(!,$-%)$.$/0+$"/! total ' elfare. w 12(-+$"/!3+0+2-&!!! )(4$"2-!56$+$"/! ' For questions 57-58, refer to the diagram below: ! ! 5 !! The above figure 38&=3 18(!+*/5(1!.&/!*!,*/1207-*/!%&&'9!F.!18(!+*/5(1!23!0&41/&--(' G#7. 8(!*;&6(!.2%7/(!shows t!he market for a particular good. If the market is controlled by a !;<!*! H perfect-price-discriminating monopoly, consumer surplus equals ,(/.(01",/20("'230/2+24*124%!+&4&,&-<C!0&437+(/!37/,-73!(I7*-3! A) A. $# $ ! B) A +!!B 9+ C. C) C:#!! !#!:!#!>9! .$ D) z>#!! 9! ero. > ?#!! (/&9! D 58. The above figure shows the market for a particular good....
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This note was uploaded on 09/29/2013 for the course ECON 201 taught by Professor Maxli during the Winter '13 term at Massey Palmerston North.

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