ECN 1A Study Guide - Midterm Guide: Scantron Corporation, Demand Curve, Sole Proprietorship
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No calculators, cell phones, or other electronic aids allowed. Instructions: answer these multiple choice questions on your scantron. Scantron your name (last name first) and student id number, section #, and ta name. Suppose that a monopolist has a total cost of 60 + 4q, where q is output. Suppose the demand curve they face is p = 20 q. Managers and owners who do not profit maximize will generally be replaced. Firm owners, like other people, are greedy and selfish: suppose that families with incomes of ,000 spend on average ,000 on health care, while families with income of ,000 spent on average ,000. This shows that health care: all firms are assumed to profit maximize. This is assumed true of all firms because: suppose the supply of housing lots in davis is fixed at 10,000. Suppose also that the demand for housing lots is given, in $, by p = 500,000 20q.
