# 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
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.

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