ECO101H1 Study Guide - Midterm Guide: Opportunity Cost
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ECO101H1 Full Course Notes
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Eco100 term test 2 marking scheme november 30, 2012. Note: on all questions, 1 mark deducted for minor mistakes/errors. Incorrect additions to graphs that were not required in the question. 7 marks for complete and correct graphs. 4 marks for a correct explanation of, atc increases firms making losses firms exit lr profits = 0. 5 marks for correct graph (including clear labels of pc, pm, qc, qm, ss, dd) Minus 1 mark for an incorrect atc if added to the graph (not required) Max 3 marks awarded if monopoly and competitive outcomes are not on the same graph. 3 marks for explanation; p> mr for monopoly, p=mr for competitive, profit maximize by setting q where mr=mc. Mr, mc are the same (2 marks), therefore q same (1 mark) It is not ae (1 mark) because, [some definition of ae; eg. p=mc] (1 mark) 5 marks for correct graph (including pc, qc=qm, ss, dd, mr=price ceiling)
