ECON 2030 : Econ 2030 Test 2 Old Test Questions
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Econ 2030 test 2: in the long run, a monopolist will earn economic profits, equal to zero, greater than zero, greater than or equal to zero. Bob is a wheat farmer, but also likes to give fiddle lessons. Bob faces a choice: spend ten hours planting wheat or spend ten hours giving fiddle lessons. Suppose farmer bob charges per hour for his fiddle lessons. Suppose greg"s guava grove operates in a perfectly competitive market and this level of production, greg"s average total cost is . 50, his average is producing its profit-maximizing level of guavas. Suppose further that at variable cost is sh. 95, and his price is . 10 per kilo of guavas: over time in the situation above, the number of guavas produced by greg will. , everything else held constant: remain unchanged, increase, decrease, over time in the situation above, the economic profit of guava sellers will , everything else held constant, remain unchanged, increase, decrease.
