ECON 303 Practice Questions for Exam 2
1. The demand for good X has been estimated by Qd = 12 - 3Px + 4Py. Suppose that good X sells at $2 per unit and good Y sells for $1 per unit. a. What is the own-price elasticity of demand for good X? (Answer: -0.6)
ECON 303 - Managerial Economics Practice Questions for Exam 4 1. You are the manager of a monopoly that faces a demand curve described by P = 85 - 5Q. Your costs are C(Q) = 20 + 5Q. a. What is the profit-maximizing output? (Answer: 8) b. What is the profi
ECON 303 Practice Questions for Exam 1
1. Suppose a firms current profit is $80 million, the interest rate is 6%, and the expected growth rate of the firms profit is 5%. a. What is the value of the firm if it continues for 3 years? (Answer: $315.5 million
ECON 303 Practice Questions for Exam 3
1. Consider a cost function C(Q) = 100 + 10Q + Q2. What is: a. the average fixed cost of producing 20 units of output? (Answer: $5) b. the average variable cost of producing 10 units of output? (Answer: $20) c. the a