M Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @) City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | My | 7 Lez | NOW Em | Wo | w|Do | + X - -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: 2 ( w -- A 6 -- 8 9 -- -- 10 11 12 Question 12 (6 points) Saved V Based on the table below for a perfectly competitive firm: 14 15 V Quantity Fixed Cost Variable Total Marginal Cost Cost Cost 10 200 50 250 20 200 100 300 5 30 200 300 500 20 40 200 800 1000 X (a) Find the marginal cost as X. (b) If the equilibrium price is $20, find the profit maximizing quantity. (c) How much profit will the firm earn? 1 80OF ENG 10:59 AM Mostly sunny Q Search US 7/20/2023M Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @) City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | My | 7 Lez | NOW Em | Wo | w|Do | + X - -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: 2 ( w -- A/ A U 6 -- 8 9 -- -- 10 11 12 Question 13 (4 points) -- -- Perfectly competitive firms are price takers. 14 15 (a) What would happen if a perfectly competitive firm charged a price above the equilibrium price? (b) Why won't a perfectly competitive charge a price lower than the equilibrium price? A 1 80OF Mostly sunny Q Search ENG 11:00 AM US 7/20/2023M Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @ City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | & My | 7 Lez | NOW Em | Wo | w|Do | + X - -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: 2 ( w -- A U 6 -- 8 9 Question 14 (4 points) -- Joann divides her consumption between books and games. Both books and games 10 11 12 are normal goods for Joann. If the price of games rises: -- -- (a) Do you expect her to buy more, fewer, or the same number of games? 14 15 (b) After the price of games rises, Joann purchases fewer books. Does this imply that, when it comes to games, Joann has a stronger income effect or a stronger substitution effect? (c) If Joann responds to an increase in game prices by purchasing fewer books, does this imply that her demand for games is elastic or inelastic? Explain your reasoning. A 1 80OF Q Search ENG 11:00 AM Mostly sunny US 7/20/2023M Dra | M Inb | Age | Vin | DS. | M Ser | The | & Cos | Vali | |Exis | s Shc| Be: | My| (46 | @ City | Qu | Hol | 9 Ma | log|DEL X & Lal | 2 Lau | Orc * Col | & My | 7 Lez | NOW Em | Wo | w|Do | + X - -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: 2 ( w -- A U 6 -- 8 9 Question 15 (7 points) -- If a binding price floor is imposed on a market: 10 11 12 -- -- a) Should the price be above or below the market equilibrium? b) Why will some sellers benefit from the price floor? 14 15 c) Why will some potential sellers lose out from the price floor? d) Will consumer surplus increase, decrease, or remain the same? Briefly explain your answer . e) Will social (or total) surplus increase, decrease, or remain the same? Briefly explain your answer. f) Will deadweight loss increase, decrease, or remain the same? Briefly explain your answer. A 1 80OF Q Search ENG 11:00 AM Mostly sunny US 7/20/2023