Practice Exam Multiple choice questions. 1) Which of the following statements about natural monopoly is correct? A) A natural monopoly’s average cost is decreasing. B) A natural monopoly’s marginal cost is decreasing. C) A natural monopoly usually has a small fix cost. D) Governments usually want to ban natural monopoly. 2) Which of the following statements about perfect price discrimination is correct? A) A firm in a perfect competitive market can apply perfect price discrimination
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THE UNIVERSITY OF HONG KONG School of Economics & Finance 2006-2007 1st Semester Examination Economics: ECON1001 A to H Introduction to Economics 1 A to H Drs S Démurger‚ K F Wong & P Yip December 16‚ 2006 2:30-4:30p.m. Candidates may use any self-contained‚ silent‚ battery-operated and pocket-sized calculator. The calculator should have numeral-display facilities only and should be used only for the purposes of calculation. It is the candidate’s responsibility to ensure that his calculator operates
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focus on motives for buying and process of learning * Sociological models—Consumer behavior is determined by social forces that act upon them * Economic models – focus on the consumer as a self interested utility maxi miser- intent on maximizing enjoyment from his/her purchases * Stimulus response models – composite models taking into account a variety of factors including stimuli from marketing What are the various stages one goes through when one plans to buy some thing? *
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Wiis to sell. If the Wii goes out of favor or the makers of the Wii begin to limit the price that can be charged for the system‚ the company that relied solely on its investment in Wiis could lose everything. Similarly‚ if a company focuses only on maximizing its profit‚ it may miss opportunities for investment and expansion. Expectation and Goodwill You also need to consider consequences of profit maximization. If a company pursues a profit maximization strategy‚ it
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THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS SESSION 1‚ 2008 ECONllOl MICROECONOMICS I FINAL EXAMINATION TIME ALLOWED - 2HOURS THIS PAPER IS WORTH 60% OF THE TOTAL SUBJECT MARK This examination paper consists of two parts - Part A and Part B Part A consists of 20 multiple choice questions each worth one (1) mark. Answer all the questions in Part A on the answer sheet provided‚ using pencil only: (a) Print your student number‚ name and initials in the space provided and mark the appropriate
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to give the selling price. This method although has two flaws; it takes no account of demand and there is no way of determining if potential customers will purchase the product at the calculated price. AC + Profit markup It is lower than profit maximizing level of pricing Price = Cost of production + Margin of profit Creaming or skimming Selling a product at a high price‚ sacrificing high sales to gain a high profit‚ therefore ‘skimming’ the market. Usually employed to reimburse the cost of
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Discuss the various ways in which services can be distributed and the challenges faced using the various channels of distribution. INTRODUCTION A service can be defined as an essentially intangible benefit either on its own right or as a significant part of a tangible product which through some form of exchange satisfies an identified need (Palmer‚ 2001). From the dictionary it is said to be a system or organization that provides for a basic public need. Distribution is the process of
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(assuming the market has only 2 individuals) Q1 = 16 - 4P Q2 = 20 –2P respectively a. What is the market demand curve equation? Write it in the conventional way. b. Given the total cost as TC = 2 + 0.9Q2. Calculate the profit maximizing quantity and price and the total profits. c. Draw a diagram showing the equilibrium situation in (b). 3. The market demand and supply functions for a consumer item are as follow: Qd = 120 – 6P Qs = 20 +4P a)
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MB0042 MANAGERIAL ECONOMICS Q. Inflation is a global Phenomenon which is associated with high price causes decline in the value for money. It exists when the amount of money in the country is in excess of the physical volume of goods and services. Explain the reasons for this monetary phenomenon 1. Define Inflation 2. Causes for Inflation ANS: (1) Inflation is a situation of substantial and rapid increase in the level of prices and consequent deterioration in the value of money over a period of
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Strayer University ECO 550 Week 1 Homework Chapter 1 2. A principal-agent relationships involves the owners (principals) delegating decision-making authority to managers (agents). A conflict occurs when the agents pursue acceptable levels of shareholder wealth and profit rather than a maximization of profit. They are pursuing their own self-interests. One way that the agents act in their own self-interests would be by focusing on long-term job security. This could cause the agents to limit
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