BUSINESS ADMINISTRATION DEPARTMENT

HOA LAC
FINAL EXAMINATION
SUBJECT: Microeconomics (ECO111) - Essay
Duration: 120 minutes

Student Information
Name: PHẠM THỊ HẢI YẾN Roll number: HS186138
Room No: Class: MKT1908

FOR TEACHER ONLY

MARK MARKED BY Signature of Proctor
(NAME AND SIGNATURE)

Instructions:
Students have 120 minutes for this exam section. Students are not allowed to use any materials. Simple
calculators are allowed. Numerical answers without calculations do not have full credits. All graphs
should have necessary labels.

Question 1 (5 points)
A monopoly faces a demand curve and has total costs as follows
Quantity Price Total Cost
1 20 30
2 18 32
3 15 36
4 12 42
5 9 50
6 7 63
7 4 77

a) Calculate marginal cost at each output level.

b) Calculate total revenue at each output level.
c) Calculate profit/loss at each output level.
d) The government forces this monopoly to produce at an output level which is the most desirable for
the society. Among the output levels in the table, how much would the government force the firm to
produce? Explain your answer. At that socially efficient output level, how much should the
government tax or subsidize the firm? Explain your answer.

a)

Question 2 (5 points)
You own and operate a fruit stand. Your demand curve is given by P = 0.5 - 0.002Q, where P is in
dollars and Q is in pounds of fruit. Your marginal cost curve is MC = 0.006Q. Your fixed costs equal
$10.
a. Graph you demand and marginal cost curves.
b. Derive and graph your marginal revenue curve.
c. Calculate and profit maximizing price and quantity and show them on your graph.
d. Calculate your profit.
e. Calculate consumer surplus at the profit maximizing P and Q

Approved by: Checked by: Built by:

Name: Name: Name: Nguyễn Thành Tâm

Date: Date: Date: /03/2024