| Remember: This quiz is open book and open note. | ||||
| If you have any questions or concerns, please let me know. | ||||
| All questions are worth 1 point | ||||
| Question 1: Given the following information, determine the consumer’s | ||||
| Marginal Utility for each good. | ||||
| Price of Apples = $2 | Price of Oranges = $4 | |||
| Quantity | Utility of Apples | Utility of Oranges | MU of Apples | MU of Oranges |
| 1 | 16 | 20 | ||
| 2 | 28 | 36 | ||
| 3 | 36 | 48 | ||
| 4 | 40 | 56 | ||
| 5 | 40 | 60 | ||
| 6 | 36 | 60 | ||
| 7 | 28 | 56 | ||
| Question 2: Now find the Marginal Utility per dollar of each good | ||||
| Quantity | MU per $ of Apples | MU per $ of Oranges | ||
| 1 | ||||
| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| 7 | ||||
| Question 3: If the consumer had $24 to spend, how many apples and oranges would (s)he buy? | ||||
| 4 apples and 4 oranges | ||||
| Question 4: A monopolist firm sees the following demand | ||||
| Find the Marginal Revenue | ||||
| Price | Quantity | Marginal Revenue | ||
| $8 | 1 | |||
| $7 | 2 | |||
| $6 | 3 | |||
| $5 | 4 | |||
| $4 | 5 | |||
| $3 | 6 | |||
| $2 | 7 | |||
| $1 | 8 | |||
| Question 5: Here’s that firm’s cost schedule | ||||
| Find the Marginal Cost | ||||
| Quantity | Total Fixed Cost | Total Variable Cost | Marginal Cost | |
| 1 | $4 | $5 | ||
| 2 | $4 | $9 | ||
| 3 | $4 | $12 | ||
| 4 | $4 | $14 | ||
| 5 | $4 | $18 | ||
| 6 | $4 | $24 | ||
| 7 | $4 | $32 | ||
| 8 | $4 | $42 | ||
| Question 6: Find the monopolist’s equilibrium quantity | ||||
| Question 7: What is the equilibrium price? | ||||
| Question 8: In pure competition, the supply curve that the individual firm sees is . . . | ||||
| a) Upward Sloping | ||||
| b) Downward Sloping | ||||
| c) Flat at the equilibrium price | ||||
| Question 9: If the Long-run Average Cost is always downward sloping how many firms | ||||
| will exist in the natural equilibrium? | ||||
| Question 10: Based on the following table, what price will each oligopolist set? | ||||
| Firm A sets High Price | Firm A sets Low Price | |||
| Firm B | ||||
| Sets | Firm A’s Profits = $18 | Firm A’s Profits = $20 | ||
| High | Firm B’s Profits = $18 | Firm B’s Profits = $12 | ||
| Price | ||||
| Firm B | ||||
| Sets | Firm A’s Profits = $12 | Firm A’s Profits = $15 | ||
| Low | Firm B’s Profits = $20 | Firm B’s Profits = $15 | ||
