ECON 162
HW 2
ECON 162代写 Thedemand curve represents
a.theamount of a good a consumer buys
b.the amount of a good a consumer buys, given the quantity…
Q1 Multiple Choice Questions ECON 162代写
- Thedemand curve represents
a.theamount of a good a consumer buys
b.the amount of a good a consumer buys, given the quantity the seller iswilling to sell
c.theamount of a good a consumer is willing to buy, given prices
d.noneof the above
- When an airline price its fare at $240, 100 seats were sold. Then, after the airlinereduce the price by $5, 110 seats were sold. What is the absolute price elasticity of demand for the airline’s fare? ECON 162代写
a.10
b.4.8
c.2.5
d.6.5
- Suppose consumers will always buy gasoline no matter how high the price thatseller would charge. The gasoline market is:
a.perfectlyElastic
b.perfectlyInelastic
c.perfectlyLinear
d.noneof the above
- Suppose a firm’s production technology is given by Q = KL1/2. If we are in theshort run and the firm is using 10 units of capital input, how many workers will this firm hire if it wants to produce 100 units of output? ECON 162代写
a.1worker
b.10workers
c.100workers
d.1000workers
- Whichof the following is true in the long-run?
a.Afirm can vary only one of the inputs used in production.
b.Afirm can vary all the inputs used in production.
c.Thelevel of output produced cannot be
d.Inthe long-run the marginal cost of production is
Q2 ECON 162代写
Assume a firm’s production cost is: long-run average cost LAC=long-run marginal cost LMC=$2 per unit and inverse demand function is given by P=8-3Q, where P denotes price per pound and Q denotes output.
(1)Determinefirm’s optimal output and
(2)Suppose the wholesale market can be divided into two segments with the demandfunctions given by P1= 10-5Q1 and P2 = 6-2Q2. If firm is able to discriminate the price between these two market segments and resale is impossible between the two segments, what price should firm charge for each market segment? ECON 162代写
Q3 (True or False, and give explanations)
(1)Assumemarginal cost is a constant number which is not 0, then when price elasticity of demand is equal to -1, we are saying that the profit is
(2)Assume marginal cost is a constant number which is not 0, then we are saying thatthe firm will always choose a point of a demand curve where it is
