Exercises for chapter1 Microeconomics

Exercises for chapter1 Microeconomics extra materials for Microeconomics Seventh Edition 7th N.Greogory Mankiw Business Administration (Faculty of Business Administration) Exercises for practice. Bài tập môn kinh tế Vĩ mô, chương 1.

PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) EXERCISES FOR FINAL TEST TYPE 1: SUPPLY, DEMAND AND GOVERNMENT POLICIES Exercise 1: Consider the supply and demand schedule for good X as follow: P ($/kg) 10 20 30 Q (kg) 15 10 Q (kg) 10 12 Supply function is A Q = -0,5P + 20 B Q = 0,2P + C Q = 0,5P + 10 D None of the above Demand function is A Q = -0,5P + 20 B Q = 0,2P + C Q = 0,5P + 10 D None of the above Marker equilibrium price and quantity are A P = 20, Q = 10 B P = 10, Q = 20 C P = 20, Q = 20 D None of the above If Government imposes a price ceiling of 25$/kg, what will happen in the market? A There will be a surplus in the market B There will be a shortage in the market C Market still operates at the equilibrium status D None of the above If Government imposes a price ceiling of 15$/kg, what will happen in the market? A There will be a surplus in the market B There will be a shortage in the market C Market still operates at the equilibrium status D None of the above At the equilibrium point, demand is A Relatively elastic B Relatively inelastic viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) C Unitary elastic D None of the above Price elasticity of supply at the equilibrium point is A E = 0,6 B E = 0,4 C E = 0,2 D None of the above If Government imposes an excise tax of t = 2$/kg on seller then A Demand curve shift upward by a distance of t B Demand curve shift downward by a distance of t C Supply curve shift upward by a distance of t D Supply curve shift downward by a distance of t (Continue question 8) New market equilibrium price and quantity are A P = 20,57; Q = 9,71 B P = 22, Q = 10,4 C P = 22; Q = D None of the above 10 (Continue question 8) Deadweight loss caused by tax is A DWL = 0,29 B DWL = 0,58 C DWL = 15 D None of the above Exercise 2: Suppose the market for good X has supply schedule and demand schedule: P (1000$/tons) 27 32 37 42 47 Q (tons) 42 38 34 30 26 Q (tons) 30 32 34 36 38 Demand function is A Q = 79,5 – 1,25P B P = 79,5 – 1,25Q C P = 1,25Q – 79,5 D None of the above Supply function is A Q = - 48 + 2,5P viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) B P = 48 – 2,5Q C P = - 48 + 2,5Q D None of the above Market equilibrium price and equilibrium quantity are A Q = 37; P = 34 B Q = 34; P = 37 C Q = 24; P = 17 D None of the above Consumer surplus at the equilibrium point is A CS = 841,75 B CS = 722,5 C CS = 840 D None of the above Price elasticity of demand at the equilibrium point is A E = - 0,67 B E = - 0,87 C E = - 0,73 D None of the above If Government imposes a tax of 2000$/ton on seller then A Demand curve shift to the right B Demand curve shift to the left C Supply curve shift to the right D Supply curve shift to the left (Continue question 6) New market equilibrium price and quantity are A P = 33,47; Q = 37,67 B Q = 33,47; P = 37,67 C Q = 33; P = 37 D None of the above (Continue question 6) Deadweight loss caused by tax is A DWL = 0,527 B DWL = 0,627 C DWL = 0,727 D None of the above If Government imposes a price ceiling of 30000$/ton, what will happen in the market? viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) A A shortage because this price ceiling is not binding B A shortage because this price ceiling is binding C A surplus because this price ceiling is not binding D A surplus because this price ceiling is binding 10 (Continue question 9) Calculate the consumer surplus? A CS = 936 B CS = 960,5 C CS = 987,875 D None of the above Exercise 3: Suppose the market for good A has supply schedule and demand schedule: P ($/unit) 60 65 70 75 Q (unit) 280 270 260 250 Q (unit) 10 The demand function is A P = -0,5Q – 200 B Q = -2P + 400 C Q = -2P + 500 D None of the above The supply function is A P = - 2,5Q + 50 B P = 2,5Q + 55 C Q = 0,4P - 20 D None of the above The equilibrium price and equilibrium quantity is A Q = 50; P = 175 B Q = 55; P = 175 C Q = 60; P = 175 D None of the above Consumer surplus at the equilibrium point is A CS = 625 B CS = 635 C CS = 645 D None of the above viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) Total surplus at the equilibrium point is A TS = 15870 B TS = 18570 C TS = 18750 D None of the above Price elasticity of demand at the equilibrium point is A E = - 1,75 B E = -7 C E = -8,75 D None of the above If Government imposes a price ceiling of 165$/unit, what will happen in the market? A A shortage because this price ceiling is not binding B A shortage because this price ceiling is binding C A surplus because this price ceiling is binding D Neither a shortage nor a surplus because this price ceiling is not binding (Continue question 7) The actual quantity transacted in the market is A Q = 46 B Q = 50 C Q = 70 D None of the above (Continue question 7) Consumer surplus is A CS = 1061 B CS = 1071 C CS = 1081 D None of the above 10 (Continue question 7) Calculate the deadweight loss? A DWL = 424 B DWL = 216 C DWL = 24 D None of the above Exercise 4: Suppose the market for good A has supply function and demand function: P = 200 – 0,5Q and P = 50 + 0,25Q (P: $/unit, Q: unit) The equilibrium price and quantity is viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) A P = 100, Q = 200 B P = 100, Q = 300 C P = 200, Q = 100 D None of the above Price elasticity of supply at the equilibrium point is A E = 0,125 B E = C E = D None of the above Producer surplus at the equilibrium point is A PS = 3500 B PS = 3750 C PS = 5000 D None of the above Total surplus at the equilibrium point is A TS = 15000 B TS = 20000 C TS = 25000 D None of the above If government imposes a price ceiling of 120$/unit, what will happen in the market? A A shortage because this price ceiling is binding B A shortage because this price ceiling is not binding C A surplus because this price ceiling is binding D Neither a shortage nor a surplus because this price ceiling is not binding Government imposes a tax of 15$/unit on seller, calculate new equilibrium price and quantity? A P = 110, Q = 180 B P = 110, Q = 200 C P = 180, Q = 110 D None of the above (Continue question 6) Calculate the total tax revenue of government? A TR(tax) = 3000$ B TR(tax) = 2700$ C TR(tax) = 1650$ viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) D None of the above (Continue question 6) Calculate the tax burden for buyer? A 900$ B 1600$ C 1800$ D None of the above (Continue question 6) Calculate the tax burden for seller? A 900$ B 1600$ C 1800$ D None of the above 10 (Continue question 6) Calculate the deadweight loss? A DWL = 100$ B DWL = 150$ C DWL = 200$ D None of the above Exercise 5: Suppose the market for good A has supply and demand function as follow: Q = 48 - P; P = 12 + 2Q (P: 1000$/ton, Q: tons) Market equilibrium price and equilibrium quantity are A Q = 12, P = 36 B Q = 12,5, P = 37,5 C P = 12, Q = 36 D None of the above Consumer surplus at the equilibrium point is A CS = 62 B CS = 72 C CS = 144 D None of the above Price elasticity of supply at the equilibrium point is A E = 1/6 B E = 3/2 C E = D None of the above viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) Government imposes a tax of 3000$/ton on seller, what will happen in the market? A Demand curve shift to the left B Demand curve shift to the right C Supply curve shift to the left D Supply curve shift to the right (Continue question 4), new equilibrium price and quantity are A P = 37; Q = 13 B P = 35; Q = 13 C P = 37; Q = 11 D None of the above Because of a rise in buyers’ income, the quantity demanded increase tons at every single price level What will happen in the market? A Demand curve shift to the right B Demand curve shift to the left C Supply curve shift to the right D Supply curve shift to the left (Continue question 6) New market equilibrium price and quantity is A P = 37,3; Q = 12,7 B P = 38; Q = 13 C P = 37; Q = 14 D None of the above If government imposes a price floor of 42000$/ton, calculate producer surplus? A PS = 18 B PS = 56 C PS = 144 D None of the above (Continue question 8) Calculate total surplus? A TS = 126 B TS = 162 C TS = 216 D None of the above 10 (Continue question 8) Calculate deadweight loss? A DWL = 54 B DWL = 162 viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) C DWL = 216 D None of the above Exercise 6: Suppose the market for good A has supply and demand function as follow: P = 34 – Q; P = 10 + 3Q (P: 1000$/ton, Q: tons) Market equilibrium point is A Q = 28; P = B P = 16; Q = 26 C Q = 6; P = 28 D None of the above Consumer surplus at the equilibrium point is A CS = 36 B CS = 18 C CS = 48 D None of the above Price elasticity of supply at the equilibrium point is A E = 1,56 B E = 2,33 C E = 14 D None of the above Government imposes a tax of 2000$/ton on the seller, what happen in the market? A Demand curve shift to the left B Demand curve shift to the right C Supply curve shift to the left D Supply curve shift to the right (Continue question 4) New equilibrium price and quantity are A Q = 5,5; P = 28 B P = 6; Q = 29 C Q = 5,5: P = 28,5 D None of the above Because of a rise in buyers’ income, the quantity demanded increase tons at every single price level What will happen in the market? A Demand curve shift to the right B Demand curve shift to the left viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) C Supply curve shift to the right D Supply curve shift to the left (Continue question 6) New equilibrium price and quantity are A P = 7; Q = 31 B P = 31; Q = C P = 17; Q = 21 D None of the above Government imposes a price floor of 24000$/ton, the actual quantity transacted in the market is A Q = B Q = C Q = 10 D None of the above (Continue question 8) Compare to question 2, consumer surplus will A Increase B Decrease C Remain unchange D Cannot be determined whether it increase or decrease or remain unchange 10 (Continue question 8) Calculate the deadweight loss? A DWL = 1,5 B DWL = 2,5 C DWL = 3,5 D There is no DWL Exercise 7: Consider the market for good A with supply and demand function as follow: P = 180 - 3Q and P = 60 + Q (P: 1000VND/kg; Q: 100kg) Market equilibrium price and quantity are A P = 90; Q = 30 B P = 30; Q = 90 C P = 60; Q = 120 D P = 120; Q = 60 Price elasticity of demand at the equilibrium point is A E = -1 B E = -9 viethoa.k52@ftu.edu.vn 10 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) A DWL = $50 B DWL = $100 C DWL = $150 D None of the above If Government impose a fixed tax of 100$ on the monopolist then A Demand curve shift upward by a distance of 100 B Supply curve shift upward by a distance of 100 C Marginal cost curve shift upward by a distance of 100 D None of the above If Government imposes an excise tax of 6$/kg on the monopolist, new optimal price and quantity are A Q = 9; P = 17 B Q = 9; P = 27 C Q = 9; P = 37 D None of the above 10 (Continue question 9) The monopolist’s maximum profit in this case is A 𝜋 = 143$ B 𝜋 = 197$ C 𝜋 = 251$ D None of the above Exercise 2: A monopolist faces the demand function: Q = 100 - 2P and has total cost function as follow: TC = 3Q2 + 6Q + (TC: $, P: $/kg, Q: kg) Marginal cost function of this firm is A MC = 6Q + B MC = 3Q + C MC = 3Q2 + 6Q + D None of the above Marginal revenue function of this firm is A MR = 100 – Q B MR = 100 – 2Q C MR = 50 – Q D None of the above The monopolist’s quantity in the total revenue maximizing strategy is viethoa.k52@ftu.edu.vn 34 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) A Q = 19,6 B Q = 12,25 C Q = 50 D None of the above The monopolist’s price in the total revenue maximizing strategy is A P = 25 B P = 75,5 C P = 87,75 D None of the above The monopolist’s profit in the total revenue maximizing strategy is A 𝜋 = 594,25 B 𝜋 = 119 C 𝜋 < D None of the above Optimal quantity of the monopolist is A Q = 16 B Q = C Q = 50 D None of the above Optimal price of the monopolist is A P = 42 B P = 46 C P = 48 D None of the above Maximum profit of the monopolist is A 𝜋 = 594,25 B 𝜋 = 119 C 𝜋 < D None of the above If the monopolist acts like a perfectly competitive firm, how much is the quantity? A Q = 6,77 B Q = 7,77 C Q = 8,77 D None of the above viethoa.k52@ftu.edu.vn 35 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) 10 If Government imposes a fixed tax on the monopolist then A P*, Q* and profit changes B P*, Q* and profit stay the same C P*, Q* change but profit stays the same D P*, Q* stay the same but profit changes Exercise 3: A monopolist faces the demand function: P = 18 – 2Q and has total cost function as follow: TC = Q2 (P: $/kg, Q: kg) Optimal price and quantity of the monopolist are A Q = 2, P = 14 B Q = 3, P = 12 C Q = 4, P = 10 D None of the above Price elasticity of demand of the monopolist at the optimal point is A E = - B E = - C E = - D None of the above Consumer surplus of the monopolist at the optimal point is A CS = 7$ B CS = 8$ C CS = 9$ D None of the above Maximum profit of the monopolist is A 𝜋 = 27$ B 𝜋 = 37$ C 𝜋 = 47$ D None of the above The monopolist’s total revenue maximizing price is A P = 8$ B P = 9$ C P = 10$ D None of the above (Continue question 5) Producer surplus of the monopolist in this case is viethoa.k52@ftu.edu.vn 36 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) A PS = 20,25$ B PS = 25,25$ C PS = 30,25$ D None of the above If Government imposes an excise tax of 3$/kg on the monopolist then A Supply curve will shift upward B FC curve will shift upward C TC curve will shift upward D None of the above (Continue question 7) The monopolist’s new optimal quantity is A Q = 1,5 B Q = 2,5 C Q = 3,5 D None of the above (Continue question 7) The monopolist’s new optimal price is A P = 11 B P = 13 C P = 15 D None of the above 10 If Government imposes a fixed tax of 10$ on the monopolist then A Increase price, decrease quantity, profit decreases less than 10$ B Increase price, decrease quantity, profit decreases more than 10$ C Increase price, decrease quantity, profit decreases 10$ D Keep price and quantity unchange, profit decreases 10$ Exercise 4: A monopolist has MC = 300$, FC = 40000$ and faces the demand function: Q = 1000 – P (P: $/unit, Q: unit) The monopolist’s total cost function is A TC= 300 + 40000Q B TC = 300Q2 + 40000 C TC = 300Q + 40000 D None of the above The monopolist’s optimal quantity is A Q = 350 viethoa.k52@ftu.edu.vn 37 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) B Q = 450 C Q = 650 D None of the above The monopolist’s optimal price is A P = 350$ B P = 650$ C P = 700$ D None of the above The monopolist’s maximum profit is A 𝜋 = 75000$ B 𝜋 = 82500$ C 𝜋 = 98600$ D None of the above Consumer surplus of the monopolist at the optimal point is A CS = 61025$ B CS = 61520$ C CS = 61250$ D None of the above Producer surplus of the monopolist at the optimal point is A PS = 122500$ B PS = 123500$ C PS = 124500$ D None of the above Total surplus of the monopolist at the optimal point is A TS = 138750$ B TS = 183570$ C TS = 183750$ D None of the above If the monopolist acts like a perfectly competitive firm, how much is the quantity? A Q = 650 B Q = 700 C Q = 750 D None of the above Deadweight loss caused by the monopolist is viethoa.k52@ftu.edu.vn 38 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) A DWL = 61250$ B DWL = 62250$ C DWL = 63250$ D None of the above 10 If Government imposes an excise tax of 150$/unit on the monopolist, what will happen to the market? A Supply curve shift upward by a distance of 150 B Marginal cost curve shift upward by a distance of 150 C Total cost curve shift upward by a distance of 150 D None of the above Exercise 5: A monopolist has the total revenue function: TR = 100Q – 2Q2 and average variable cost function: AVC = Q + 4, FC = 300$ (P: $/kg, Q: kg) Demand function is A P = 100 – 4Q B Q = 100 – 2P C Q = 50 – 0,5P D None of the above The monopolist’s optimal quantity is A Q = 15 B Q = 16 C Q = 17 D None of the above The monopolist’s optimal price is A P = 68 B P = 69 C P = 70 D None of the above The monopolist’s maximum profit is A 𝜋 = 468 B 𝜋 = 486 C 𝜋 = 568 D None of the above Consumer surplus at the optimal point is viethoa.k52@ftu.edu.vn 39 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) A CS = 512 B CS = 256 C CS = 265 D None of the above Total surplus at the optimal point is A TS = 1420 B TS = 1240 C TS = 1024 D None of the above Price elasticity of demand at the optimal point is A E = -1 B E = -2 C E = -2,125 D None of the above What is the supply curve of the monopolist? A MC curve B A part of MC curve C MR curve D None of the above If the monopolist acts like a perfectly competitive firm, how much is the price? A P = 52 B P = 35 C P = 24 D None of the above 10 Deadweight loss caused by the monopolist is A DWL = 124 B DWL = 126 C DWL = 128 D None of the above Exercise 6: A monopolist faces demand function: P = 100 – Q and has constant average total cost ATC = 30 (P: $/unit, Q: unit) The monopolist’s optimal price and quantity are A Q = 35; P = 55 viethoa.k52@ftu.edu.vn 40 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) B Q = 35; P = 65 C Q = 35; P = 75 D None of the above Maximum profit of the monopolist is A 𝜋 = 1215 B 𝜋 = 1225 C 𝜋 = 1235 D None of the above Price elasticity of demand at the optimal point is A E = -0,86 B E = -1,86 C E = -2,86 D None of the above Lerner index of the monopolist is A L = 0,54 B L = 0,64 C L = 0,74 D None of the above The monopolist’s total revenue maximizing price is A P = 30 B P = 40 C P = 50 D None of the above (Continue question 5) The monopolist’s profit in this case is A 𝜋 = 1000 B 𝜋 = 1100 C 𝜋 = 1200 D None of the above Optimal quantity of perfectly competitive market is A Q = 50 B Q = 60 C Q = 70 D None of the above Deadweight loss caused by the monopolist is viethoa.k52@ftu.edu.vn 41 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) A DWL = 612,5 B DWL = 622,5 C DWL = 632,5 D None of the above If Government imposes a fixed tax of 600$ on the monopolist then A Supply curve will shift upward by a distance of 600 B MC curve will shift upward by a distance of 600 C TC curve will shift upward by a distance of 600 D None of the above 10 (Continue question 9) The monopolist’s profit in this case is A 𝜋 = 625 B 𝜋 = 725 C 𝜋 = 825 D None of the above Exercise 7: A monopolist has MC = 4Q + 8, FC = 650$ and faces the demand function: P = 890 – Q (P: $/kg, Q: kg) The monopolist’s optimal price and quantity are A Q = 596; P = 147 B Q = 147; P = 743 C Q = 147; P = 569 D None of the above The monopolist’s maximum profit is A 𝜋 = 64117 B 𝜋 = 64177 C 𝜋 = 64717 D None of the above Price elasticity of demand at the optimal point is A E = – 5,05 B E = – C E = – 0,5 D None of the above Consumer surplus of the monopolist at the optimal point is A CS = 21609 viethoa.k52@ftu.edu.vn 42 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) B CS = 18804,5 C CS = 10804,5 D None of the above Producer surplus of the monopolist at the optimal point is A PS = 64827 B PS = 64728 C PS = 68724 D None of the above If the monopolist wants to maximize total revenue, how much is the price? A P = 445 B P = 545 C P = 454 D None of the above If the monopolist wants to maximize total revenue, how much is the profit? A 𝜋 = 202235 B 𝜋 = - 202235 C 𝜋 = - 205223 D None of the above If the monopolist acts like a perfectly competitive firm, how much is the price? A P = 713,6 B P = 723,6 C P = 733,6 D None of the above If the monopolist acts like a perfectly competitive firm, how much is the quantity? A Q = 164,7 B Q = 164,6 C Q = 176,4 D None of the above 10 Deadweight loss caused by the monopolist is A DWL = 2150,9 B DWL = 2160,9 C DWL = 2170,9 D None of the above viethoa.k52@ftu.edu.vn 43 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) Exercise 8: A monopolist faces demand function P = 120 - 2Q and has total cost function as follow: TC = 0,5Q2 + 5Q + 40 (P: $/kg, Q: kg) Optimal price and quantity of the monopolist are A P = 74, Q = 23 B P = 72, Q = 24 C P = 70, Q = 25 D None of the above Lerner index of the monopolist is A L = 0,32 B L = 0,62 C L = 0,92 D None of the above Consumer surplus of the monopolist at the optimal point is A CS = 1058$ B CS = 580$ C CS = 529$ D None of the above Maximum profit of the monopolist is A 𝜋 = $1082,5 B 𝜋 = $1182,5 C 𝜋 = $1282,5 D None of the above If the monopolist acts like a perfectly competitive firm, how much is the quantity? A Q = 26,33 B Q = 28,33 C Q = 38,33 D None of the above Supply curve of the monopolist is A Marginal cost curve B A part of marginal cost curve, but from ATCmin C A part of marginal cost curve, but from AVCmin D None of the above Deadweight loss caused by the monopolist is A DWL = $350,67 viethoa.k52@ftu.edu.vn 44 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) B DWL = $352,67 C DWL = $355,67 D None of the above If Government imposes an excise tax of 4$/kg on the monopolist, new optimal quantity of the monopolist is A Q = 22,2 B Q = 23,2 C Q = 24,2 D None of the above (Continue question 8) New optimal price of the monopolist is A P = 75,6 B P = 76,6 C P = 79,6 D None of the above 10 (Continue question 8) Maximum profit of the monopolist in this case is A 𝜋 = $1192,1 B 𝜋 = $1276,9 C 𝜋 = $1280,9 D None of the above Exercise 9: A monopolist has MC = 2Q + 10, FC = 1000$ and faces the demand curve: Q = 750 – P (P: $/kg, Q: kg) Variable cost function of the monopolist is A VC = Q2 + 10 B VC = Q + 10Q2 C VC = Q2 + 10Q D None of the above The monopolist’s profit maximizing quantity is A Q = 165 B Q = 175 C Q = 185 D None of the above The monopolist’s profit maximizing price is A P = 465 viethoa.k52@ftu.edu.vn 45 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) B P = 565 C P = 665 D None of the above The monopolist’s maximum profit is A 𝜋 = 67450 B 𝜋 = 67090 C 𝜋 = 57460 D None of the above Price elasticity of demand at the optimal point is A E = - 3,05 B E = - 2,05 C E = - D None of the above Consumer surplus at the optimal point is A CS = 17000 B CS = 17112 C CS = 17112,5 D None of the above Producer surplus at the optimal point is A PS = 68450 B PS = 68540 C PS = 58640 D None of the above If the monopolist wants to maximize total revenue, how much is the quantity? A Q = 275 B Q = 375 C Q = 475 D None of the above If the monopolist wants to maximize total revenue, how much is the price? A P = 475 B P = 375 C P = 275 D None of the above 10 If the monopolist wants to maximize total revenue, how much is the profit? viethoa.k52@ftu.edu.vn 46 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) A 𝜋 = 4750 B 𝜋 = – 3750 C 𝜋 = – 4750 D None of the above Exercise 10: A monopolist has MC = 8Q + 10, FC = 100$ and faces the demand curve: Q = 110 – P (P: $/kg, Q: kg) The monopolist’s profit-maximizing quantity is A Q = 10 B Q = 12 C Q = 100 D None of the above The monopolist’s profit-maximizing price is A P = 12 B P = 88 C P = 100 D None of the above The monopolist’s maximum profit is A 𝜋 = 100 B 𝜋 = 400 C 𝜋 = 1000 D None of the above Price elasticity of demand at the optimal point is A E = -1 B E = -5 C E = -10 D None of the above Consumer surplus at the optimal point is A CS = 40 B CS = 50 C CS = 60 D None of the above Deadweight loss caused by the monopolist is A DWL ≈ 5,56 viethoa.k52@ftu.edu.vn 47 PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) B DWL ≈ 15,56 C DWL ≈ 25,56 D None of the above If the monopolist wants to maximize total revenue, how much is the price? A P = 45 B P = 55 C P = 65 D None of the above If Government imposes an excise tax of 10$/kg on the monopolist, new optimal quantity of the monopolist is A Q = B Q = C Q = D None of the above (Continue question 8) New optimal price of the monopolist is A P = 101 B P = 110 C P = 111 D None of the above 10 (Continue question 8) Maximum profit of the monopolist in this case is A 𝜋 = 305 B 𝜋 = 386 C 𝜋 = 395 D None of the above viethoa.k52@ftu.edu.vn 48 ... (Continue question 5) What is the benefit of subsidy for each party? A 1,64$/kg for buyers and 0,36$/kg for sellers B 0,36$/kg for buyers and 1,64$/kg for sellers C Buyers receive 2$/kg and sellers... viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) D None of the above (Continue question 6) Calculate the tax burden for buyer? A 900$ B 1600$ C 1800$... viethoa.k52@ftu.edu.vn PRINCIPLE OF MICROECONOMICS INSTRUCTOR: NGUYEN VIET HOA (0378418749) C DWL = 216 D None of the above Exercise 6: Suppose the market for good A has supply and demand function