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ECON5040 Microeconomics for Business
Sample practice questions for the Final
Due No due date Points 19 Questions 19 Time Limit None
Allowed Attempts Unlimited
Attempt History
Attempt Time Score
LATEST Attempt 1 14 minutes 17 out of 19
Submitted Dec 9 at 14:27
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0 / 1 ptsQuestion 1
Market demand is given by Q = 100 - P and supply is Q = -20 + P. Suppose that by
law Q must be equal to 20 so resources can be diverted to the war effort. What is the
price the consumers will pay? What is the consumer surplus?
D S
S
80, 200orrect Answer
40, 400
60, 600
40, 800
None of the other provided answers is correct. ou Answered
1 / 1 ptsQuestion 2
Suppose a production function is q = K L and in the short run capital (K) is fixed
at 125. If the wage is $10 and the rental rate on capital is $1.6, the fixed cost is
1/2 1/3
$2,000
$200Correct!
$20,000
$0
None of the other provided answers is correct.
1 / 1 ptsQuestion 3
Product differentiation complicates the study of oligopolies because such markets
may not
be efficient.
have prices equal to marginal cost.
have free entry and exit.
obey the law of one price.Correct!
None of the other provided answers is correct.
1 / 1 ptsQuestion 4
Suppose there are 100 firms each with a short run total cost of STC = q + q + 10.
The market supply curve is
2
Q = −50 + 50PCorrect! S
it is not possible to find the market supply curve with the information
provided.
Q = −100 + 100PS
Q = −50 + 50PS 2
None of the other provided answers is correct.
1 / 1 ptsQuestion 5
A price-discriminating monopolist having the same constant marginal cost in two
markets should charge a higher price in the market
that has a higher demand.
that has a more elastic demand.
that has a less elastic demand.Correct!
that has a higher marginal revenue.
None of the other provided answers is correct.
1 / 1 ptsQuestion 6
TC = Aq + bq + cq + d. AVC = 3 2
Aq + bq + cq +d/q2
Aq + bq + cCorrect! 2
Aq + bq + cq3 2
d
None of the other provided answers is correct.
1 / 1 ptsQuestion 7
If the demand faced by a firm is elastic, selling one more unit of output will
increase revenue.Correct!
decrease revenue.
keep revenues constant.
decrease price.
None of the other provided answers is correct.
1 / 1 ptsQuestion 8
As long as marginal cost is below average cost, average cost will be
decreasing.Correct!
rising.
constant.
changing in a direction that cannot be determined without more
information.
None of the other provided answers is correct.
1 / 1 ptsQuestion 9
A monopolist has TC = 0.1Q - 2Q + 100. Market demand is Q = 86 - P. Its profit-
maximising output is
2
92
46
40Correct!
20
None of the other provided answers is correct.
1 / 1 ptsQuestion 10
In the Cournot model, each firm assumes that its rival will ____ its output when the
firm adjusts its own output. Which word best completes the sentence?
increase
not adjustCorrect!
decrease
adjust
None of the other provided answers is correct.
1 / 1 ptsQuestion 11
Alastair (A) and Bennett (B) must have their coffee and cream in exact proportions
(each cup is 10 units of coffee per 1 unit cream). They are invited to a weekend long
event (during which they can easily consume 8 cups of coffee). Suppose A is given 8
units of cream and B is given 80 units of coffee. The post trading result (one in which
any trade that makes both parties better off than their initial allocation) will guarantee
each person
nothing
at least 1 cup of properly made coffee.Correct!
at least 2 cups of properly made coffee.
exactly 4 cups of properly made coffee.
None of the other provided answers is correct.
