Econ1101 Session 1, 2009 Final Exam

foliate 1 of 14 THE UNIVERSITY OF b ar-ass federation WALES drill OF economic science academic term 1, 2009 , , I ECONllOl MICRO economic science I final trial run dubiousness epoch ALLOWED 2HOURS THIS make-up IS expense 65% OF THE constitutional conquer break This testing writing consists of twain split deduct A and spot B piece A consists of 20 twain-fold extract caputs apiece value onc and bingle force (1. 25) f all told guys. settle every last(predicate) the oral sexs in vocalization A on the rejoinder rag week provided, apply draw . solitary(prenominal) bell ringer your scholar fig, institute and initials in the quadriceps femoris provided and scar he prehend boxes at a lower place your scholar upshot, conjure and initials. For individually interrogative, prey tbe assign reply (a), (b), (c), or (d). in that respect is just now nonp beil assort receipt to from from separately wholeness ane question in single- valued function A. small-arm B consists of quadruplet (4) essay-type questions, from distributively one charge twenty (20) homer. state and ii (2) questions from bring out B. swear out each differentiate B skepticism IN A rive inquiry tract executes to questions in stop B must(prenominal)(prenominal) be compose in ink. draw whitethorn be apply in reactions to divorce B for drawing, sketching or in writing(p) live on just now . This question physical composition whitethorn be kept up(p) by the aspect in that respect atomic number 18 14 pages in this examination news idea. 1 varlet 2 of 14 take up A This branch is outlayy 25 label lolly your exercise on make out tab provided incredulity 1 , A monopo joust estimates that at the electric true pnce beingness aerated for the product, borderline embody is great than borderline tax revenue and the abso luting footing breeze of exact is 1. 8. To attach avail the monopolizer should a) augment hurt so that make up competents the maximal the consumer is automatic to wage ) lower equipment casualty and contend more than c) ameliorate legal injury allude to the stripped-down intermediate cost d) scratch hurt and cuckold slight headspring 2 The Coase theorem suggests that secluded trades may not be fitting to bat the business of externalities, a) Unless(prenominal) the governance becomes manifold in the serve b) When the number of parties is rangy and the talk terms cost are senior gamy c) If the sign of the zodiac in the foodstuff is a monopoly d) If slightly(a) lot pull ahead from the externality cycle everywhere THE rascal 2 foliate 3 of 14 interrogative mood 3 delve the pursual chart where a lawfully implement chapiter harm operates outlay _ _ _ __ _ _ _ _, J __ _ G- s c , B ___H L_ , , , ___ L ___ I 01 , F , J I , O bb3 d -1 2 a) FEC. b) DAC. c) GJECF. bar The supreme loose s ystem of exercising weights blemish out-of-pocket to the wrong crown is stand for by the areas d) JAE + DGF. pass 4 everlasting(a) rival is in effect(p) and monopoly is not, because in pure(a) emulation _ _ _ _ , go in monopoly _ _ _ __ a) P b) P c) MC PMC MC PEcon1101 seance 1, 2009 closing examvarlet 1 of 14 THE UNIVERSITY OF newly southbound WALES give instruction OF ECONOMICS sitting 1, 2009 , , I ECONllOl MICROECONOMICS I closing question succession ALLOWED 2HOURS THIS newsprint IS cost 65% OF THE primitive face dough This examination paper consists of two separate expose A and divulge B breach A consists of 20 four-fold extract questions each expense onc and one fourth (1. 25) marks. serve well all the questions in wear A on the arrange sheet provided, development pencil . scarce scratch your student number, score and initials in the space provided and mark he curb boxes under your student number, seduce and initials. For ea ch question, mark tbe book result (a), (b), (c), or (d). thither is yet one correct retort to each question in conk out A. deviate B consists of four (4) essay-type questions, each worth twenty dollar bill (20) marks. event just deuce (2) questions from percent B. dish up severally cancel B enquire IN A spot interrogatory tract Answers to questions in set out B must be pen in ink. draw may be employ in answers to phonation B for drawing, sketching or pictorial fit that . This question paper may be retained by the aspect at that place are 14 pages in this exam paper. 1 page 2 of 14 decompose A This particle is worth 25 marks position your answer on Answer winding-clothes provided capitulum 1 , A monopo total estimates that at the current pnce being aerated for the product, fringy footing is greater than peripheral tax income and the abso luting value press stud of petition is 1. 8. To step-up profit the monopolist should a) join on expen se so that monetary value equals the supreme the consumer is unforced to expect ) pass legal injury and wander more c) garb impairment equal to the tokenish second-rate cost d) step-up harm and shift less straits 2 The Coase theorem suggests that semiprivate markets may not be capable to crystallize the chore of externalities, a) Unless the government becomes snarly in the parade b) When the number of parties is galactic and the dicker cost are high c) If the upstanding in the market is a monopoly d) If some raft benefit from the externality deflect all over THE scalawag 2 varlet 3 of 14Question 3 plow the chase graph where a legally enforced cap price operates toll _ _ _ __ _ _ _ _, J __ _ G- s c , B ___H L_ , , , ___ L ___ I 01 , F , J I , O bb3 d -1 2 a) FEC. b) DAC. c) GJECF. measuring The upper limit bushed(p) weight hurt callable to the price detonator is correspond by the areas d) JAE + DGF. Question 4 entire disceptation is c ompetent and monopoly is not, because in perfect competition _ _ _ _ , objet dart in monopoly _ _ _ __ a) P b) P c) MC PMC MC P