Regulation and Antitrust Policy (Econ 180)

Course page:
www.drake.edu/cbpa/econ/boal/180

I. Multiple choice [4 pt each: 36 pts total]
(1)e. (2)b. (3)a. (4)b. (5)f. (6)a. (7)e. (8)b. (9)c.
II. Problems
(1) [Shortrun cost: 28 pts]
(2) [Shortrun cost curves and supply: 30 pts]
III. Challenge question
Now SAFC = SATC  SAVC. At Q=500, for example, SATC = $16 and SAVC = $6, so SAFC = 16  6 = $10. Therefore, SFC = $10 x 500 = $5000. (Calculations at different values of Q should result in an identical final answer for SFC.)
I. Multiple choice [2 pt each: 18 pts total]
(1)c. (2)a. (3)a. (4)c. (5)e. (6)c. (7)b. (8)d. (9)a.
II. Problems
(1) [Shortrun cost: 28 pts]
(2) [Shortrun cost curves and supply: 30 pts]
III. Challenge question
Now SAFC = SATC  SAVC. At Q=500, for example, SATC = $12 and SAVC = $4, so SAFC = 12  4 = $8. Therefore, SFC = $8 x 500 = $4000. (Calculations at different values of Q should result in an identical final answer for SFC.)
[end of answer key]