Practice Midterm 2022 Solutions

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School
McGill University **We aren't endorsed by this school
Course
MGCR 293
Subject
Economics
Date
Nov 9, 2023
Pages
18
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Practice Gluestions for Midterm Exam MGCR 293 Managerial Economics Fall, ZOZ? Instructions: . Questions in the midterm exam cover Math Review - chapter 4. o The format of the practice is the same as the midterm exam. There is a total of 7o questions. Each question is worth 1 point. Suggestions: . Most of the practice questions are from numerical examptes in the tecture slides, Assignment 1, and A&A fiLes. . However, you shou[d review ALL numerical examples in the lecture stides, ALL questircns in Assignment L, and ALL questions in 8&A fil.es from Math Review to Chapter 4. . Do the prar:tice questions before the midtermexam one week at least. . Do the practice questions at least 2 timesor probably more. o Try to finislh the practice questions within 2 hours because the time Limit for the midterm exam is 2 hours.
1) A firm's total. cost function is TC = aQz + 10e + 50.The market price is $90 per unit, and the firm's profit maximizing Level. of output is b units. lv\c : tee Mc Mc 2) A firm's total cost function is TC = oz + 5e + 1oo, where e is the output What is a? A . a = i / . B . a = [ ] . C. a = 1-0. D. a = 1-2. tevel. The price per un output (O*)? A . Q x = 9 u n i t s . tvl R -iflc N1 K j.t r: + t c + \ 0 t \ o ' z(s)Q E. None of the above. it of 1 ( : 8'*\Gotr,u output is $15.If What is the profit-maximizing N'lK: $ ls t v \ e - a e + s B . Q * = 7 u n i l l s . C . Q * = 5 u n i 1 l s . D . Q x = 3 u n i 1 l s . E. Noner of the above. f ) 6I+ r0 L 3) \ C q + r o - Q o G - = 8 I S Il'a profit-rnaximrizirng firm findsthat, at its output LeveL, the marginat revenue is Less tharr the marginaL cosll, the firm shou[d A. stop producing. B. decrt:ase autput. C. increase output. D. shut down. E. Noner of the above.
4) A firm's profit function is n = goe + 2oez - e3, where e is the output levet. At wlnat output [eve[ (Q*) does the marginat profit equaL the average profit? A. G* = 8 units. -I( = 3 B1ilil Eir: unlt*g',i M P : C. Q* = 12 units. D. e*=16units. A?t lL : 3C: +Z6q -e i 5) A firm's profit function is n = 3OQ + 20 [eve[. At what output leve[ (Q*) is the m, A, Q*=6.67u'nits. lt _ 3oQ +z_'d_qt B. Q* = 10 units. t\,4 . r (- ,.* _ .1 " ,,^,*.' lVtc,o1t"J (&.:)^l 4I- ?tdl: 3c C. 8* = 12 units. D. Q* = 16 units. E. None of the above. J N\*[e*]r1o + q 0e,- 3q 6 Q : o Q t 6'61 *.\' 6) A firm's profitfunction is n = 3OQ + 2OQ2 - 03, where Q is the output [eve[. Forwhat range of outputdoes the firm's marginal profit increase? A . 0 < 8 < 1 4 . B . 0 < 8 < 1 0 . c . 0 < Q < 9 . Pii,$#,,$t*-616?; E. None of the above
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