Assignment Instructions/ Description
Image transcription textM Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @) City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | My | 7 Lez | NOW Em | Wo | w|Do | +
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- -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1
Midterm Exam
X
Therese Folefac: Attempt 1
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Question 12 (6 points)
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V
Based on the table below for a perfectly competitive firm:
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V
Quantity Fixed Cost
Variable Total
Marginal Cost
Cost
Cost
10
200
50
250
20
200
100
300
5
30
200
300
500
20
40
200
800
1000
X
(a) Find the marginal cost as X.
(b) If the equilibrium price is $20, find the profit maximizing quantity.
(c) How much profit will the firm earn?
1 80OF
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7/20/2023... Show moreImage transcription textM Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @) City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | My | 7 Lez | NOW Em | Wo | w|Do | +
X
- -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1
Midterm Exam
X
Therese Folefac: Attempt 1
Page 1:
2
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A
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Question 13 (4 points)
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Perfectly competitive firms are price takers.
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(a) What would happen if a perfectly competitive firm charged a price above the
equilibrium price?
(b) Why won't a perfectly competitive charge a price lower than the equilibrium
price?
A
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7/20/2023... Show moreImage transcription textM Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @ City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | & My | 7 Lez | NOW Em | Wo | w|Do | +
X
- -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1
Midterm Exam
X
Therese Folefac: Attempt 1
Page 1:
2
( w
--
A
U
6
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Question 14 (4 points)
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Joann divides her consumption between books and games. Both books and games
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are normal goods for Joann. If the price of games rises:
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(a) Do you expect her to buy more, fewer, or the same number of games?
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(b) After the price of games rises, Joann purchases fewer books. Does this imply that,
when it comes to games, Joann has a stronger income effect or a stronger
substitution effect?
(c) If Joann responds to an increase in game prices by purchasing fewer books, does
this imply that her demand for games is elastic or inelastic? Explain your reasoning.
A
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7/20/2023... Show moreImage transcription textM Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @ City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | & My | 7 Lez | NOW Em | Wo | w|Do | +
X
- -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1
Midterm Exam
X
Therese Folefac: Attempt 1
Page 1:
2
( w
--
A
U
6
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8
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Question 15 (7 points)
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If a binding price floor is imposed on a market:
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a) Should the price be above or below the market equilibrium?
b) Why will some sellers benefit from the price floor?
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c) Why will some potential sellers lose out from the price floor?
d) Will consumer surplus increase, decrease, or remain the same? Briefly explain your
answer .
e) Will social (or total) surplus increase, decrease, or remain the same? Briefly explain
your answer.
f) Will deadweight loss increase, decrease, or remain the same? Briefly explain your
answer.
A
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