Question 1

Suppose a farmer is a price taker in soybeans with cost functions given by   Suppose the farmer has to purchase a license for $50,the new total cost function is

Accepted Answer

A)  still TC = .1q2 + 2 
B)  TC = .1q2 + .2q + 80 
C)  TC = .1q2 + 2q + 50 
D)  TC = 50 
A)  still TC = .1q2 + 2 
B)  TC = .1q2 + .2q + 80 
C)  TC = .1q2 + 2q + 50 
D)  TC = 50

Question 2

If an unregulated electric company is a monopolist and faces demand of Q = 50 - 10P.   The profit maximizing price is

Accepted Answer

A)  0 
B)  1 
C)  2.5 
D)  5 
A)  0 
B)  1 
C)  2.5 
D)  5

Question 3

If an unregulated (because it produces electricity from hydroelectric power)electric company is a monopolist and faces demand of Q = 100 - 50P.   The profit maximizing price is

Accepted Answer

A)  0 
B)  1 
C)  .50 
D)  2 
A)  0 
B)  1 
C)  .50 
D)  2

Question 4

If the demand faced by a firm is inelastic,selling one more unit of output will

Accepted Answer

A)  increase revenues. 
B)  decrease revenues. 
C)  keep revenues constant. 
D)  increase profits. 
A)  increase revenues. 
B)  decrease revenues. 
C)  keep revenues constant. 
D)  increase profits.

Question 5

The markup pricing technique involves determining the selling price of a good by adding a profit markup to minimum average cost.This would result in maximum profits only if

Accepted Answer

A)  average cost were constant. 
B)  the markup were zero. 
C)  the markup varied with the elasticity of demand. 
D)  demand were inelastic. 
A)  average cost were constant. 
B)  the markup were zero. 
C)  the markup varied with the elasticity of demand. 
D)  demand were inelastic.

Question 6

If an unregulated electric company is a monopolist and faces demand of Q = 50 - 10P.   Profits are

Accepted Answer

A)  0 
B)  10 
C)  52.5 
D)  62.5 
A)  0 
B)  10 
C)  52.5 
D)  62.5

Question 7

If the demand curve a firm faces shifts to the right,usually

Accepted Answer

A)  it would be impossible to tell whether the marginal revenue curve shifts. 
B)  the marginal revenue curve would shift to the left. 
C)  the marginal revenue curve would shift to the right. 
D)  the marginal revenue curve would not shift. 
A)  it would be impossible to tell whether the marginal revenue curve shifts. 
B)  the marginal revenue curve would shift to the left. 
C)  the marginal revenue curve would shift to the right. 
D)  the marginal revenue curve would not shift.

Question 8

Suppose a farmer is a price taker (MR = P = 10)in soybeans with cost functions given by   The profit maximizing level of output is

Accepted Answer

A)  0 
B)  30 
C)  40 
D)  50 
A)  0 
B)  30 
C)  40 
D)  50

Question 9

If the demand faced by a firm is elastic,selling one less unit of output will

Accepted Answer

A)  increase revenue. 
B)  decrease revenue. 
C)  keep revenues constant. 
D)  decrease price. 
A)  increase revenue. 
B)  decrease revenue. 
C)  keep revenues constant. 
D)  decrease price.

Question 10

Suppose a farmer is a price taker (MR = P = 6)in soybeans with cost functions given by   The firm's supply curve is given by

Accepted Answer

A)  q = 5P - 10 
B)  q = .2P +2 
C)  q = 10P - 2 
D)  q = 2P - 5 
A)  q = 5P - 10 
B)  q = .2P +2 
C)  q = 10P - 2 
D)  q = 2P - 5

Question 11

Suppose a farmer is a price taker (MR = P = 6)in soybeans with cost functions given by   The level of output is

Accepted Answer

A)  10 
B)  20 
C)  40 
D)  80 
A)  10 
B)  20 
C)  40 
D)  80

Suppose a farmer is a price taker in soybeans with cost functions given by Suppose the farmer has to purchase a license for $50,the new total cost function is

If an unregulated electric company is a monopolist and faces demand of Q = 50 - 10P. The profit maximizing price is

If an unregulated (because it produces electricity from hydroelectric power)electric company is a monopolist and faces demand of Q = 100 - 50P. The profit maximizing price is

If the demand faced by a firm is inelastic,selling one more unit of output will

The markup pricing technique involves determining the selling price of a good by adding a profit markup to minimum average cost.This would result in maximum profits only if

If an unregulated electric company is a monopolist and faces demand of Q = 50 - 10P. Profits are

If the demand curve a firm faces shifts to the right,usually

Suppose a farmer is a price taker (MR = P = 10)in soybeans with cost functions given by The profit maximizing level of output is

If the demand faced by a firm is elastic,selling one less unit of output will

Suppose a farmer is a price taker (MR = P = 6)in soybeans with cost functions given by The firm's supply curve is given by

Suppose a farmer is a price taker (MR = P = 6)in soybeans with cost functions given by The level of output is

Economic Models

Utility and Choice

Individual Demand Curves

Uncertainty

Game Theory

Production

Costs

Perfect Competition in a Single Market

General Equilibrium and Welfare

Monopoly

Imperfect Competition

Pricing in Input Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Behavioral Economics

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Exam 8: Profit Maximization and Supply

Suppose a farmer is a price taker in soybeans with cost functions given by Suppose the farmer has to purchase a license for $50,the new total cost function is

If an unregulated electric company is a monopolist and faces demand of Q = 50 - 10P. The profit maximizing price is

If an unregulated (because it produces electricity from hydroelectric power)electric company is a monopolist and faces demand of Q = 100 - 50P. The profit maximizing price is

If the demand faced by a firm is inelastic,selling one more unit of output will

The markup pricing technique involves determining the selling price of a good by adding a profit markup to minimum average cost.This would result in maximum profits only if

If an unregulated electric company is a monopolist and faces demand of Q = 50 - 10P. Profits are

If the demand curve a firm faces shifts to the right,usually

Suppose a farmer is a price taker (MR = P = 10)in soybeans with cost functions given by The profit maximizing level of output is

If the demand faced by a firm is elastic,selling one less unit of output will

Suppose a farmer is a price taker (MR = P = 6)in soybeans with cost functions given by The firm's supply curve is given by

Suppose a farmer is a price taker (MR = P = 6)in soybeans with cost functions given by The level of output is

Economic Models

Utility and Choice

Individual Demand Curves

Uncertainty

Game Theory

Production

Costs

Perfect Competition in a Single Market

General Equilibrium and Welfare

Monopoly

Imperfect Competition

Pricing in Input Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Behavioral Economics

Filters