University of New South Wales

Which of the following statement(s) are true? [Tick all that apply] [Note: selecting a wrong answer means you lose points again. So choose carefully!] A.A single-price monopolist producing in the inelastic part of the demand curve can increase its total revenue by raising its price. B.A single-price monopolist that maximizes profits never produces in the elastic part of the demand curve C.The total revenue of a single-price monopolist is maximized when demand is perfectly elastic. D.A single-price monopolist always generates a deadweight loss E.A single-price monopolist has a supply curve which shows the profit-maximising quantity supplied at a range of prices.

Consider a competitive, constant-cost industry. Firms operating in this market face an identical cost of production. The total cost is given by TC = 180 + 4q + 5q2. What is the price in the long-run market equilibrium? [Round your answer to the closest integer (no decimals)]

Suzanne is the monopoly seller of an illegal product in a particular city. Her marginal cost is $12 per unit and she has no other costs. She faces a demand curve of P = 135–q, and she charges a linear (or single) price to her clients. What is the profit-maximising price Suzanne charges? [Round your answer to 1 decimal point when needed]

Assume that a firm has TC = 100 + q^2. If price is $50, which statement is true? A.The firm produces 50 units, and makes an economic profit; this outcome is not a long-run equilibrium B.The firm produces 25 units, and makes an economic profit; this outcome is not a long-run equilibrium. C.The firm produces 50 units, and makes zero economic profit; this outcome is not a long-run equilibrium. D.The firm produces 25 units, and make zero economic profit; the market is in its long-run equilibrium. E.None of the above.

In a perfectly competitive industry, which statement is true? [Tick all that apply] [Note: selecting wrong answers means you lose points again. So choose carefully!] A.In the long run in a constant-cost industry, each firm has a perfectly elastic supply curve. B.In the long run in a constant-cost industry, each firm has an upward-sloping supply curve. C.In the long run in a constant-cost industry, the long-run industry supply curve is perfectly elastic. D.In the long run in a constant-cost industry, the long-run industry supply curve is upward-sloping. E.In the long run in a constant-cost industry, larger quantities can only be supplied in the market at a higher price. F.In the short run in a constant-cost industry, if firms make positive economic profits, new firms will enter the market. G.In the long run, each firm faces a downward-sloping demand curve. H.In the short run, the industry supply curve is the horizontal summation of the supply curves of firms currently in the industry. I.None of the statements in this list are correct.

Which of the below is NOT price discrimination? A.An airline charges a separate fee for customers who check in bags B.A fast food restaurant lets you double the size of your drink for an extra 20 cents C.A college charges lower tuition for economically disadvantaged students D.A grocery store mails out coupon fliers