Regulation and Antitrust Policy (Econ 180)
Drake University, Spring 2007
William M. Boal

www.drake.edu/cbpa/econ/boal/180

william.boal@drake.edu

QUIZ 8 ANSWER KEY
Introduction to Regulation

Version A

I. Multiple choice [2 pt each: 40 pts total]

(1)c. (2)d. (3)b. (4)d. (5)c. (6)b. (7)c. (8)d. (9)d. (10)c.
(11)b. (12)b. (13)d. (14)c. (15)b. (16)a. (17)c. (18)b. (19)c. (20)b.

II. Problems

(1) [Pricing with economies of scale: 60 pts]

  1. $2;
  2. loss;
  3. $60 million;
  4. $0 million;
  5. $8;
  6. neither;
  7. $0 million;
  8. $6 million;
  9. $2;
  10. $12;

Version B

I. Multiple choice [2 pt each: 40 pts total]

(1)a. (2)d. (3)d. (4)b. (5)a. (6)d. (7)b. (8)c. (9)e. (10)d.
(11)a. (12)c. (13)b. (14)d. (15)c. (16)b. (17)a. (18)d. (19)d. (20)d.

II. Problems

(1) [Pricing with economies of scale: 60 pts]

  1. $1;
  2. loss;
  3. $60 million;
  4. $0 million;
  5. $5;
  6. neither;
  7. $0 million;
  8. $10 million;
  9. $1;
  10. $12;

[end of answer key]