ECO200Y1 Study Guide - Midterm Guide: Price Ceiling, Fair Coin, Perfect Competition
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ECO200Y1 Full Course Notes
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Duration of test: 90 minutes +10 minute march madness bonus = 100 minutes! Be sure to show all steps in your work for a full grade. 1 be aware that your test may not have a march madness bonus! Yes or no (8 marks) (10) for each of the statements below, indicate if you agree (yes) or disagree (no). Select the best answer, keeping in mind, of course, the assumptions and models we have developed in class. a) Sponge bobby"s firm produces sponges, using three inputs x, y, z according to this production function: q = x0. 4*y0. 1*z0. 4. Bobby"s total cost curve in the long run is linear. Yes no: mickey the monopolist is maximizing his profits. Eddie the economist has calculated his lerner index of market power to be 0. 4. Elasticity of demand at that point is 2. 5. Yes no: minnie the monopolist has a total cost of tc = 10q.
