微观经济学作业答案1

Managerial Economics

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HOMEWORK SET#1

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Name:

Class:

Student #:

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(Due day: Next class)

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Part 1:

1. A perfectly competitive market has:

a)many buyers and sellers.

b)several large buyers.

c) a meeting place for buyers and sellers.

d)a) and b)

e)a) and c)

Choose:a) There must be numerous small buyers and sellers for a market to be perfectly competitive. A meeting place is unnecessary.

2. Boeing Corporation and Airbus Industries are the only two producers of long-range commercial aircraft. This market is not perfectly competitive because:

a) Each company has annual sales over $10 billion.

b)Each company can significantly affect prices.

c) Airbus receives subsidies from the European Union.

d) Airbus cannot sell aircraft to the United States government.

e) All of the above.

Choose:b) The character of monopoly market is each firm can affect prices.

3.If the real price of a college education has risen during a period of inflation:

a)its nominal price has not changed.

b)its nominal price has risen slower than a general index of prices.

c)its nominal price has risen faster than a general index of prices.

d)its current dollar price has not changed.

e)None of the above is correct.

Choose:c) When the nominal price of a college education rises faster than the rate of inflation, the real price of a college education will rise.

4. The constant dollar price of a good:

a) is the same as its real price.

b) is the same as its nominal price.

c) adjusts for inflation in the overall price level.

d) b) and c)

e) a) and c)

Choose:e) By definition, the constant dollar price is equal to the real price, and both adjust the nominal price for the effects of the inflation.

5. The price of a sandwich was $ in 1970 and $ in 1993. The CPI was in 1970 and in 1993. The 1993 price of a sandwich in 1970 dollars is:

a) $.

b)$.

c) $.

d) $.

Choose:b) x=144/ x=

6. Which of the following would shift the demand curve for new textbooks to the right

a) A fall in the price of paper used in publishing texts.

b) A fall in the price of equivalent used text books.

c)An increase in the number of students attending college.

d) A fall in the price of new text books.

Choose:c) non-price demand-determining variables

7. Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, with other things remaining the same, we would expect

a)the price of steel to fall.

b)the demand curve for steel to shift to the right.

c) the demand curve for plastic to shift to the left.

d)nothing to happen to steel because it is only a substitute for plastic.

e)the demand curve for steel to shift to the left.

Choose:b) the definition of substitutes

8. Last month you sold 10,000 stereos nationwide at $400 each. The month before that you sold 9,000 stereos at $410 each. Next month, you are thinking of cutting the price even further to $. Assuming that (i) the market demand for your product is linear, and (ii) all else remains equal, what is your prediction for next month’s sales

a) 10,100 units.

b) 11,000 units.

c) 11,001 units.

d) 11,051 units.

e) 12,000 units.

Choose: c) Using the two data points, find the slope and intercept of the demand curve: (9,000-10,000)/(410-400)=-100 and 10,000=a-100(400), or a=50,000. Thus, the equation of the line is Q=50,000-100P. When P=$, Q=11,001.

The next 9-11questions refer to the following demand and supply curves:

QD = 189 –

QS = 124 +

Your answers should be correct to two decimal places.

9.The equilibrium price is:

a) $84 b) $c) $ d) $150 e) None of the above is correct. Choose: c) Setting QS =QD, we obtain 124 + = 189 – . Collecting terms, = 65, or P = $.

10. The equilibrium quantity sold is:

a) 65 b) 150c) 313d) 84 e) None of the above is correct