Econ 315 exam 3 - Study guides, Class notes & Summaries

Econ 315 Exam 3 Study Guide Questions And Answers Graded A+ 2023 Sweeny model of oligopoly; why does the price become "sticky" Because of kinked demand curve Sweezy model of oligopoly; focus on price elasticity of demand - If firm lowers its price; it has inelastic demand and TR drops - If firm raises its price; it has elastic demand and TR drops No incentive to change price since TR decreases in both cases Conceptual question; effect of change in marginal cost in oligopoly model(s)...

ECON 315-70 PRACTICE FINAL EXAM 2 KEY| 2022 UPDATE ECON 315-70 PRACTICE FINAL EXAM 2 KEY| 2022 UPDATE 1. You are given a total cost function as 100 + 10Q – 6Q2 + Q3. What is the minimum level of average variable cost, and thus the minimum price the firm needs to stay open? A. $1. B. $3 C. $5 D. $7 2. Should a firm shut down if its weekly revenue is $1, 000, its variable cost is $800, and its fixed cost is $1, 500? Why? The firm should A.shut down because revenue of $1 000 is l...

ECON 315-70 PRACTICE FINAL EXAM 2 KEY| 2022 UPDATE ECON 315-70 PRACTICE FINAL EXAM 2 KEY| 2022 UPDATE 1. You are given a total cost function as 100 + 10Q – 6Q2 + Q3. What is the minimum level of average variable cost, and thus the minimum price the firm needs to stay open? A. $1. B. $3 C. $5 D. $7 2. Should a firm shut down if its weekly revenue is $1, 000, its variable cost is $800, and its fixed cost is $1, 500? Why? The firm should A.shut down because revenue of $1 000 is l...