need help!!! economics problems??

Posted on 2014-11-19 10:23:00 in Economics by BROWN

1. Assume the demand curve intersects the vertical axis at a price of $100.  If this were a competitive industry (assuming that the horizontal sum of the ATC curves of the competitive firms in the industry is ATC2), in the short run, consumer surplus each period would be

A) $2,000.

B) $1,925.

C) $3,850.

D) $1,950.

E) Cannot be determined from the information given.

2. Assume the demand curve intersects the vertical axis at $100.  How much is consumer surplus at the profit-maximizing level of output?

A) Cannot be determined from the information given.

B) $1,000.

C) $2,000.

D) $3,900.

E) $50.

3. In the preceding figure, assume that a firm with demand curve D and marginal revenue curve MR has the average total cost curve ATC2.  How much will the firm earn in economic profit each period?

A) $2,100.

B) There is not enough information given to answer the question.

C) $2,000.

D) $800.

E) $1,650.

4. If the above figure represented a competitive industry that had an industry-total ATC curve of ATC1, in the long-run, the price of the product would be

A) $50.

B) Less than $30.

C) There is not enough information given to answer the question.

D) $35.

E) $30.

5. If the firm in the preceding figure were a monopoly with ATC curve ATC1

A) In the long-run the firm would shut down.

B) The total revenue of the firm would be zero each period.

C) The accounting profit of the firm would be zero each period.

D) The economic profit of the firm would be zero each period.

E) None of the above answers is correct.

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