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Final test thầy Ninh

The document contains 7 multiple choice questions related to microeconomics concepts such as demand and supply, elasticity, costs of production, and monopoly. The questions cover topics like calculating price elasticity of demand, determining optimal output levels for firms, and comparing consumer surplus under monopoly and perfect competition. Correct answers are identified for each question based on applying the relevant microeconomics principles.

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89 views4 pages

Final test thầy Ninh

The document contains 7 multiple choice questions related to microeconomics concepts such as demand and supply, elasticity, costs of production, and monopoly. The questions cover topics like calculating price elasticity of demand, determining optimal output levels for firms, and comparing consumer surplus under monopoly and perfect competition. Correct answers are identified for each question based on applying the relevant microeconomics principles.

Uploaded by

trinhb2201167
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Q1: In the village of Frankfurter, the demand function for sausages per person is

D(p)=20-1.5p, where p is the price of a single sausage. The present population of


Frankfurter is 100 persons. Suppose that 10 more people move into town, each of
whom has the same demand function as the old residents. At a price of $2 the price
elasticity of demand for sausages in Frankfurter is:
A. increased by 10 percent.
B. decreased by 10 percent.
C. unchanged.
D. increased by 15 percent.
E. none of the above.
Qd=2000-150P
P −3
Ed=-150. Qd = 17

Q’d=2200-165P
P −3
E’d=-165. Q' d = 17

Q2: Bus ticket price in a city is 1 and the amount of ticket sold is 10,800. The price
elasticity of demand for the bus ticket is -0.6 and the price elasticity supply of bus
ticket is 1. If the demand for the bus ticket increase by 10%, then its price is
nearly?
A. 1.06
B. 1.04
C. 1.02
D. 1.08
E. None of above
Demand function: Qd=a-bP
P
Ed=-0.6=-b. Q  b=6480 => a=17280
 Demand for bus ticket: Qd=17280-6480P
Supply function: Qs=c+dP
P
Es=1=d. Q  d=10800 => c=0

 Supply function: Qs=10800P


Demand increase 10% => Q’d=1,1Qd=19008-7128P
Q’d=Qs  P=1.06 ; Q=11452
Q3: If the demand function is q = m-2(ln p) over some range of values of p; then at
all such values of p the absolute value of the price elasticity of demand:
A. Is constant as p change
B. Decreases as p increase
C. Increase as p increase
D. Increase with p as small values and decrease with p as large values
E. None of above
dq p −2
Ed= dp . q = m−2(lnp)
−2
When p increase, lnp increase => m-2lnp will decrease => m−2(lnp ) will

| −2
|
decrease. The absolute of Ed= m−2(lnp) will increase.

Q4: Given the present output of 100, a perfectly competive firm has a fixed cost of
100, its marginal cost is 7 and equal to its average cost. The present price of this
product is 6. Then, in order maximize profit the firm should
A. Maintain its present level of output
B. Lower its present level of output
C. Lower its output price
D. Raise its output price
E. None of above
AFC=1; ATC=7 => AVC=6
P=6 < MC
 At this price, firm gaining loss. Therefore, lowering its output will
maximize profit (when lower q, MC will decrease until MC=P=6)

Q5: The production function of a firm is q=50+20L. If w=15, the marginal cost of
producing the 10th unit of product is
A. 1.33
B. 0.75
C. 300
D. 20
E. None of above
q−50
TC=wL=15. 20

 TC=0.75q-37.5 => MC=0.75


Q6: The utility function of miss H is U(X,Y)=min(X+2Y,Y+2X). She consumes 10
units of X and 20 units of Y. If the price of X is 1, the income of miss H is
A. 40
B. 50
C. 20
D. 30
E. None of above
Q7: A market has a demand function of Q=18-0,25P. If this market is controlled by
a monopoly who has a cost function of TC=2Q2 +12Q+ 12, consumer surplus (CS)
will be less than that in case where this market is a perfectly competive market by
a value of
A. 62
B. 62,5
C. 63
D. 63,5
E. None of above
Monopoly: TR=P.Q=(72-4Q).Q=72Q-4Q2
 MR=TR’= 72-8Q
 MC=4Q+12
 To maximize profit, firm have to set MR=MC
 72-8Q=4Q+12
 Q=5; P=52
1
Consumer surplus in Monopoly market: CS= 2 . ( 72−52 ) .5=50

Competitive: P=MC
 72-4Q=4Q+12
 Q=7,5; P=42
1
Consumer surplus in Competitive market: CS= 2 . ( 72−4 2 ) . 7.5=112.5
 Consumer surplus (CS) will be less than that in case where this market is
a perfectly competive market by a value of 62.5

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