EC120 Final: EC120 Final Exam 2011 Fall Practice
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Which of the following would be considered a common resource good: cable television, bottled natural mineral water, uncongested toll roads, fish in the ocean, all of the above. On hot summer days, electric-generating capacity is sometimes stretched to the limit. At these times, electric companies sometimes ask people to voluntarily cut back on their use of electricity. Average revenue is the same as price for both competitive and monopoly firms. (iii: (i) only, (iii) only, (i) and (ii, (ii) and (iii) The profit- maximizing price charged for goods produced is . The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is. Average total cost for 10 units of output is : , , , , . Refer to the diagram below to answer the following questions. The deadweight loss caused by a profit-maximizing monopoly amounts to: , , , , .
