# Final Exam – ECON 203 – When price of a basket of strawberry is $2, and total utility of the basket is increasing

ASN 8 Review Session for Final Exam worth 6 points ECON 203

December 3, 2015

Ch6:TU,MU,TNU,MNU,Consumer Surplus

When price of a basket of strawberry is $2,

and total utility of the basket is increasing from zero, 6,10,12 and 13 from

zero basket to 4 baskets. Please show a table of Q,TU,MU,TNU and MNU. Then

please say how many baskets of strawberry is maximizing utilities. Calculate

consumer surplus.

Ch7:Accounting Profit & Economic Profit,

TR,TC,MR,MC and Profit

1.You have a small bakery house. Total

labor for it is $10,000 per year, annual rent $8,000, and material cost $10,000

per year. You have your own fund of $50,000 that could earn you $5,000 a year

if alternatively invested. If you work for other firm, you can make $20,000 a

year. Your entrepreneurial talents are worth $5,000 a year. Total annual

revenue from bakery house is $80,000.

Calculate accounting profit and economic

profit.

2.When you produce a soju from zero to 10,

price of the soju is moving from 0,250,243,236,229,222,215,208,201,194 and 185.

Calculate TR, MR. In this case TC is also moving from

0,300,459,582,705,847,1006,1185,1411,1746 and 2205. Calculate MC. Then say how

many sojus are maximizing profit for you.

Ch8:Perfect Competition

1.When TR=100,TC=140,TVC=80 and TFC=60,

a factory should shut down or continue operations? Why?

2.When TR=100,TC=190,TVC=130 and TFC=60,

a factory should shut down or continue operations? Why?

3.Under the perfect competition, P=1000,

AC=600, and MC equals P at 5 units. The TC curve touches a horizontal demand

curve at 3 and 7 each other. Please calculate TR,TC and profit.

4.Compare demand curves of a perfectly

competitive firm and a monopoly?

5.Compare four assumptions under perfect

competition and monopolistic competition. How are these two different in terms

of these assumptions?

Ch9:Monopoly

1.A monopoly’s MC and MR intersects at a

price of $7. If you extends this point above to demand curve, the intersection

point touches at a price of $12. In the MC and MR intersection point, Q is 200,

and AC is $4. The AC curve touches at $5 in the demand curve. Please calculate

the monopoly’s TR, TC and Profit.

2.Compare demand curves of a monopoly

and a monopolistically competitive firm.

Ch10:Monopolistic

Competition

1.A monopolistically competitive firm’s

MC and MR intersects at a price of $6. If you extends this point above to

demand curve, the intersection point touches at a price of $10. In the MC and

MR intersection point, Q is 100, and AC is $10. The AC curve touches at $10 in

the demand curve. Please calculate the monopolistically competitive firm’s TR,

TC and Profit.