Managerial Economics Quiz 2: 3 August 2025 (May 2025 term)

28 more questions in this paper

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1. Q4What wage will it pay to a nurse1 mark
2. Q5Consider the following game matrix where only the payoff of player 1 is given. Based on t…0.5 marks
3. Q6Consider the following game matrix where only the payoff of player 1 is given. Based on t…0.5 marks
4. Q7Calculate the profit-maximizing price (in \$) for this monopolist.1 mark
5. Q8Calculate the profit-maximizing quantity for this monopolist.1 mark
6. Q9What will be the profit of this monopolist?\ Profit= _1 mark
7. Q10What level of output (q) the firm will produce?1 mark
8. Q11Producer surplus of the firm is1 mark
9. Q12Suppose the average variable cost of the firm is given by AVC(q)=3+q and firm’s fixed cos…1 mark
10. Q13Based on the above data, answer the given subquestions.1 mark
11. Q14Based on the above data, answer the given subquestions.1 mark
12. Q15New equilibrium quantity after the incidence of tax Q^(t) =1 mark
13. Q16Price that buyers pay now will be P^(B)=1 mark
14. Q17Price that seller receives per unit will be P^(S)= _1 mark
15. Q18Suppose, the government acts weird and removes the tax to provide a subsidy of ₹2 per uni…1 mark
16. Q19Suppose, the government acts weird and removes the tax to provide a subsidy of ₹2 per uni…1 mark
17. Q20Suppose, the government acts weird and removes the tax to provide a subsidy of ₹2 per uni…1 mark
18. Q21Suppose, the government acts weird and removes the tax to provide a subsidy of ₹2 per uni…1 mark
19. Q22In quasi-linear utility functions, the marginal utility of income remains constant0.5 marks
20. Q23A monotonic transformation can alter the shape of indifference curves0.5 marks
21. Q24Marginal utility is unaffected by monotonic transformations0.5 marks
22. Q25The entire burden of a quantity tax falls on buyers when the price elasticity of supply i…0.5 marks
23. Q26If demand is perfectly inelastic, consumers bear the full incidence of a per-unit tax.0.5 marks
24. Q27For a profit-maximizing monopolist, price exceeds marginal revenue at the equilibrium qua…0.5 marks
25. Q28When a monopolist practices perfect price discrimination, it eliminates only some portion…0.5 marks
26. Q29A natural monopoly has a long-run marginal cost that exceeds long-run average cost.0.5 marks
27. Q30Peak load pricing is a form of price discrimination.0.5 marks
28. Q31A monopolist will never operate in the elastic portion of the demand curve.0.5 marks