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NAME
STUDENT
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MGE C41 Sample MIDTERM EXAM
PART A Do any ONE of the following TWO
questions
A1. (10 marks)
Suppose you are the manager of a company and your marketing department has just
completed a study showing that your firm has two separate markets
MGE C41  Midterm Exam Recommendations
1.5 hours (90 minutes) in length
Wednesday, March 4th
11 am in IC204 (inclass)
The exam will be entirely made up of short answer questions and
perhaps some definitions.
Covers Lectures #1  #6
You are recommended
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NAME
STUDENT #
UNIVERSITY OF TORONTO AT SCARBOROUGH
MGE C41
INDUSTRIAL ORGANIZATION
Jack Parkinson
MIDTERM EXAM  SOLUTIONS
INSTRUCTIONS:
1. Total time for this test is 1.5 hours.
2. Total marks = 90.
3. ALL exam documents MUST be handed in or you will
MGEC41 Writing Assignment
Industrial Organization
Winter 2015
The purpose of this exercise is to apply the relevant principles, ideas, and concepts
covered in this course to the analysis of a real world event or issue.
You are required to write a short pa
MGEC41: Additional (Final Exam) Sample Questions
Q1. The demand functions faced by Firms 1 and 2 reflect horizontal product
differentiation and are given by
q1 = 200  2p1 + p2
and
q2 = 100 + p1  2p2,
where p1 and p2 are the prices charged by each firm r
MGEC41 Lecture 3
Market Structure and competition
1. Dominant firm models
2. Oligopoly models
3. Market of Monopolistic Competition
2
Some key concepts
Entry /Exit barriers
(i) Government restrictions on entry.
(ii) Structural barriers to entry (Bain)
Ab
MGEC41 Lecture 5
Lec5: Price Discrimination
1. Summary: Perfect and the third degree
price discrimination
2. Second degree price discrimination
3. Other nonlinear pricing schemes
Q&A: format of Midterm Test
2
Perfect Price Discrimination
When a monopolis
Lecture 6: Additional Problems & Examples  SOLUTIONS
1) Predatory pricing
2) Limit pricing
3) Investment (in capacity, R&D &/or advertising)
4) Raising rivals costs
Problem #1 (Cartel duopoly)
Suppose there two firms making an identical product with a ma
MGEC41  Lecture 6: Additional Problems & Examples
1) Predatory pricing
2) Limit pricing
3) Investment (in capacity, R&D &/or advertising)
4) Raising rivals costs
Problem #1 (Cartel duopoly)
Suppose there two firms making an identical product with a marke
MGEC41: Monopoly  Some Price Discrimination Examples
Suppose your firm is the only supplier of a product with no close substitute (i.e. you are a
monopolist). For simplicity we will assume for now that your firm can produce any level
of output with a con
MGEC41  Lecture 7 Additional Problems & Examples
Problem #1 (end of Lec7 slides)
Q1. In a local town, a Super Toy produced by a single manufacturer (a upstream monopolist) is
sold by a distributor (a downstream monopolist). The distributor purchases the
MGEC41 WEEK #1 (Ch2) SOLUTIONS
Textbook questions Ch2: 1, 3, 5 & 7 Solutions to odd numbered textbook
problems appear at the end of the book.
Q1.
Distinguish between returns to a variable factor of production (input),
and returns to scale.
Returns to a (
C41  WEEK #2 (Ch3 & Ch4) SOLUTIONS
Review the list of important concepts listed at the end of the lecture slides to
make sure you recall what these things mean and how to compute them.
 Own price elasticity of demand
 Cross price elasticity of demand

MGEC41: Imperfect Competition (Oligopoly)  Some Examples
Oligopoly refers competition amongst the few. So we are investigating a situation where
a small number of firms are competing in a market. Not only is the number of these firms
limited it but we of
MGEC41  WEEK #1 (Ch2) Recommended Problems
Textbook questions Ch2: 1, 3, 5 & 7
Q1.
Distinguish between returns to a variable factor of production (input),
and returns to scale.
Q2.
Explain why a firms shortrun average cost function may be Ushaped. Expla
1
NAME
STUDENT #
UNIVERSITY OF TORONTO AT SCARBOROUGH
MGE C41
INDUSTRAL ORGANIZATION
Jack Parkinson
WINTER 2015
MIDTERM EXAM  SOLUTIONS
INSTRUCTIONS:
1. Total time for this test is 1.5 hours.
2. Total marks = 75.
3. ALL exam documents MUST be handed in o
C41  WEEK #2 (Ch3 & Ch4) Recommended Problems
Review the list of important concepts listed at the end of the lecture slides to
make sure you recall what these things mean and how to compute them.
 Own price elasticity of demand
 Cross price elasticity