






Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Material Type: Exam; Class: Prin of Microeconomics; Subject: Economics; University: Shepherd University; Term: Unknown 1989;
Typology: Exams
1 / 10
This page cannot be seen from the preview
Don't miss anything!
PART I. MULTIPLE CHOICE. Please circle the letter of the best answer.
Use the graph below for a monopolist to help you answer questions 15, 16, and 17. Costs and revenues ($) MC 6.00 ATC
1.50 Demand
MR . 0 5 10 15 20 25 35 40
10 15 q TYPICAL FIRM
b. Will new firms enter the industry or will firms exit the industry? Explain thoroughly referring to the graphs and/or your calculation in part a. SHOW WHAT HAPPENS IN THE GRAPHS ABOVE BY SHIFTING THE APPROPRIATE CURVE(S). (12 points) c. When the perfectly competitive market reaches its LONG- RUN EQUILIBRIUM , what will be the PRICE OF THE PRODUCT? Explain how you determined it. (6 points)