we 26) Refer to the table. should produce: to the table. Suppose that we want to
ID: 1104976 • Letter: W
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we 26) Refer to the table. should produce: to the table. Suppose that we want to produce seven barrels of oil. To minimize costs, Oil 2 Oil Pump Marginal Cost Barrels of Oil Ehal CostBarrels of Oil 10 15 20 10 12 14 16 20 30 35 24 A) one barrel of oil from Oil Pump One and six barrels of oil from Oil Pump Two. B) three barrels of oil from Oil Pump One and four barrels of oil from Oil Pump Two. C) all seven barrels of oil from Oil Pump Two. D) all seven barrels of oil from Oil Pump One 27) Suppose that a monopolist can sell five units of output at a price ofS5 or six units of output at a price of $4. What is the marginal revenue of the sixth unit? A) -$1 B) $24 C) $4 D) $49 28) Universities practice price discrimination by: A) charging students with the same residency status different rates of tuition. B) requiring each student take a set number of general education courses. C) requiring freshmen to live on campus. D) offering students different levels of scholarship support. 29) Marginal cost is: A) the change in total cost from producing one more unit of output. B) average cost times output. C) total cost divided by the change in total output D) the change in total output divided by the change in total cost 30) Cheating in cartels is most likely to occur when actions are: A) usually observable. B) not observable. C) sometimes observable. D) always observable. 31) Monopoly power is best described as the ability to: A) produce the profit-maximizing output level. B) earn economic profits without causing new firms to enter the market. C) charge the profit-maximizing price. D) produce where marginal revenue intersects halfway between the origin and the demand curveExplanation / Answer
26) B. Because total cost is minimised when MC for last quantity is equal from both operation
27)A. TR when 5qty is produced=5*5=25 and TR when Q=6 is 4*6=24 and MR=24-25=-1
28)A. Price discrimnation is charging different price for same product
29)A. MC is the change in TC due to additional unit produced
30)B.
31)B. Economic profit and firms cant enter is possible in monopoly
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