Economics 2010-640Exam IIIName: ________________________________________________Multiple-choice questions – choose the best possible answer. Good luck!1. A monopoly’s marginal cost willa. be less than the price per unit of its product.b. be less than its average fixed cost.c. exceed its marginal revenue.d. equal its average total cost.2.a.b.c.d.3.a.b.c.d.4.a.b.c.d.5.A firm is deciding whether to produce or shut down in the short run. Its total costs are $15,000 ofwhich $5,000 are the total fixed costs of production. The firm should produce in the short run as longas its total revenues are at least$0$15,000.$10,000.$5,000.A firm’s average total costs are $60, its total fixed costs are $2000, and its output is 200 units. Itsaverage variable costs are$50$60$70$100As firms exit a competitive industry that is not profitable in the short-run (i.e. profits < 0), during thetransition from the short run to the long run, the economic loss of each firm remaining in the industry:decreases and the price falls.decreases and the price rises.increases and the price falls.increases and the price rises.b.c.d.A firm is producing where its marginal costs are at the lowest level. What can one most likely inferfrom this?there is either lost opportunity for further profits by producing more, or the firm should shut-down if itis competitive and price is at that low level.It is a price-taker who is producing too much.It is a monopolist who is producing the socially optimal quantity.The firm is producing rationally.6.a.b.c.d.A single-price monopolist sets pricewhere MR=demand.where supply=demandfrom the demand curve at the quantity for which MC=MR.where MR=MC.7.Assume that the Law of Diminishing Marginal Product applies at the current output level of acompetitive firm. The price is $20 and, at the current output level, marginal cost is $16 and averagetotal cost is $20. To maximize profits the firm should:produce the current output level, since average revenue (price) = average cost.produce more since marginal revenue exceeds marginal cost at current output.produce less since marginal revenue is always below average revenue.any of the above is possible, without further information.a.a.b.c.d.18.a.b.c.d.Which of the following statements is true?(i) When a competitive firm sells an additional unit of output, its revenue increases by an amountless than the price.(ii) When a monopoly firm sells an additional unit of output, its revenue increases by an amountless than the price.(iii) Average revenue is the same as price for both competitive and monopoly firms.(i) only(iii) only(i) and (ii)(ii) and (iii)9.a.b.c.d.If a firm in a competitive market triples the number of units of output sold, then total revenue willmore than triple.less than triple.exactly triple.All of the above are potentially true.10.a.b.c.d.When a competitive firm makes a decision to shut down, it is most likely thatmarginal cost is above average variable cost.marginal cost is above average total cost.price is below the minimum of average variable cost.fixed costs exceed variable costs.Table 4.Number of figs012345TCATCTVCAVCMC$80$90$90$135$92$500$60011. Table 4 presents the cost schedule for David’s Figs. If David produces three figs, David’s total variablecosts area. $276.b. $0.c. $92.d. $376.e. $106.12. Table 4 presents the cost schedule for David’s Figs. If David produces five figs, David’s marginal costsarea. $70.b. $150.c. $200.d. $700.e. None of the above.13. At a price of $20, the marginal revenue of a monopolist is $13. If the marginal cost of production is$14, what should the monopolist do?a. Increase its priceb. Decrease its pricec. Keep its price at the same leveld. Shut down2Table 2: Firm costs14.a.b.c.d.qTC10$5020$9030$17040$27050$450Refer to Table 2. In a competitive market, Qs=30+10P and Qd=110-10 P. In the long run, we expectFirms to exitFirms to enterNo change in the number of firmsNot enough information to say15. Calculate the monopolist’s profit under the following conditions. The intersection of the marginalrevenue and marginal cost curves occurs where output is 20 units. At an output of 20 units, themonopoly price is $15 per unit, the marginal cost is $8 per unit, and the average variable cost is $6 perunit, and average fixed cost is $4 per unit.a. $180b. $140c. $120d. $10016. If a competitive firm is currently producing a level of output at which marginal cost exceeds marginalrevenue, thena. a one-unit decrease in output would increase the firm’s profit.b. average revenue exceeds marginal cost.c. the firm is earning a positive profit.d. All of the above are correct.17. Firms can have:1. Accounting profits and economic losses2. Accounting profits and economic profits3. Accounting losses and economic losses4. Accounting losses and economic profitsa. i, ii, and iiib. only i and ivc. only ii and iiid. All of the above318. A reduction in a monopolist’s fixed costs woulda. possibly increase, decrease or not affect profit-maximizing price and quantity, depending on theelasticity of demand.b. decrease the profit-maximizing price and increase the profit-maximizing quantity produced.c. increase the profit-maximizing price and decrease the profit-maximizing quantity produced.d. not affect the profit-maximizing price or quantity.19.a.b.c.d.A firm’s output is 80 units, its MC is $42, its AVC is $43, and its AFC is $10. ATC isIncreasingDecreasingConstantNot enough information20. Joni’s firm faces a perfectly elastic demand curve at a price of $30 per unit. She has costs representedby TC = 2000 + 2Q + 0.2Q2, and MC = 2 + 0.4Q. If Joni maximizes her short-run profits, how muchprofit does she earn?a. -1020b. -1860c. 1020d. 1860e. 2000Refer to the following information to answer questions 21 and 22 .Assume a certain firm is producing 1,000 units of output (so Q = 1,000). At Q = 1,000, the firm’s marginalcost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.21.a.b.c.d.At Q = 999, the firm’s total cost amounts to$10,999.$10,995.$10,990.$10,985.22.a.b.c.d.At Q = 999, the firm’s profit amounts to$1,007.$1,003.$997.$993.4Long Problems – SHOW WORK OR YOU WILL LOSE POINTS!!1. A monopolist faces demand given by: P = 100 − .4QD , and has marginal costs given by:a.MC = 10 + .2Q .Draw the demand, marginal revenue and marginal cost curves. Calculate and show how much thisfirm will sell and what they will charge.b.Calculate the producer surplus with monopoly and the consumer surplus with monopoly.5c.How much would be produced if this was a competitive market? What would be the price?d.Calculate the consumer and producer surplus for a competitive market.e.Calculate the DWL of the monopoly (if any).On my honor, as a University of Colorado at Boulder student, I have neither given nor receivedunauthorized assistance on this work.__________________________________________________67

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Essay Fountain
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
English 101
well written excellent job, thank you!!
Customer 452989, December 2nd, 2021
Social Work and Human Services
The support team was available upon request. For the past two semesters I have been stressing on receiving my assignments on expected achievement dates. I value your service and hope that you all would improve your teamwork. I have been using this service now for 2-years and was totally satisfied. With this being said, I have spent at least a thousand plus dollars with this company. Knowing there are other competing companies that are on the market for a lot less than you guys are charging. "I trust that you all would get it together and avoid last minute communication which increases stress to the student."
Customer 452919, March 27th, 2024
Thank you
Customer 452919, March 23rd, 2022
Thank you for your service as a team .
Customer 452919, December 1st, 2021
Great paper thank you so much
Customer 452667, March 19th, 2021
Thank you, Team I sincerely appreciate your service.
Customer 452919, April 13th, 2022
Very good service
Customer 453075, April 27th, 2022
The writer covered all points as expected by the professor. Thank you for your commitment to serve students.
Customer 452919, February 21st, 2024
Computer science
Thank You
Customer 453099, August 28th, 2022
thank you
Customer 452933, November 20th, 2021
Thank you. You all have been timely, and amazing.
Customer 452919, May 3rd, 2022
Fabulous fast service
Customer 453075, April 21st, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat