[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-394018-105":59,"doc-detail-394018-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","practice-midterm-3-answers","Practice Midterm 3 - Answers","","Monopolist pricing and welfare questions are solved step-by-step for an Econ 1A midterm practice set. The document derives marginal revenue from a linear demand curve, determines profit-maximizing quantity and price via MR = MC, compares efficient and monopoly outcomes, and computes deadweight loss and profits. It then analyzes regulation that forces zero profits, perfect price discrimination effects, and government taxation impacts on incidence and deadweight loss. Additional multiple-choice problems address airline fare discrimination, returns to scale from cost functions, and economic profits versus normal returns.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/practice-midterm-3-answers/394018/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/practice-midterm-3-answers/394018.png","ImageObject",300,407,{"name":92,"@type":93},"Jiven","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-09","2026-09-26",true,{"@type":102,"interactionType":103,"userInteractionCount":52},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"How is the monopolist’s marginal revenue expressed as a function of quantity?","Question",{"text":112,"@type":113},"From the demand curve and linear structure, the solution states MR = 24 - 4Q.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"What are the profit-maximizing price and quantity for the monopolist?",{"text":117,"@type":113},"Using MR = MC, the answers give Q* = 5 and P* = 14.",{"name":119,"@type":110,"acceptedAnswer":120},"What determines how a $4-per-unit tax is split between consumers and the monopolist?",{"text":121,"@type":113},"The document computes the new monopolist optimal outcome under the tax (with MC shifting to MC = 8), then concludes that consumers pay half of the tax.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},394018,1790507451,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":52,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},1099513958607,"https://ap-avatar.wpscdn.com/avatar/100002390cf8733938c?x-image-process=image/resize,m_fixed,w_180,h_180&k=1778829742770036399","Gregory Clark Econ 1A, Fall 2012  \nPractice Questions for Midterm 3  \n1. Suppose that a monopolist has a marginal cost of $4, and a fixed cost of $48 . Suppose also that the demand curve is given by Q = 12 –(P/2) .  \nThe situation in this problem is summarized in the following diagram  \n\n| 28\u003Cbr>24\u003Cbr>20\u003Cbr>16\u003Cbr>12\u003Cbr>8\u003Cbr>4\u003Cbr>0 |  Demand Curve \u003Cbr> Marginal Revenue \u003Cbr> P* \u003Cbr>~~ ~~ Average Cost \u003Cbr>\u003Cbr>0 2 4 6 8 10 12 14 |\n| --- | --- |\n\n1. What is the marginal revenue of the monopolist as a function of Q? MR = 24 – 4Q  \n2. What is the profit maximizing price and quantity for the monopolist? MR = MC => Q* = 5, P* = 14  \n3. What is the efficient price? P = MC => P = 4 (at Q = 10)  \n4. What is the deadweight loss from the monopolist’s maximizing profits? 25  \n5. What are the monopolist ’s profits at the profit maximizing price?  \nTR – TC = 5x14-48-5x4 = 2  \n6. If a regulator forces the monopolist to set a price that generates 0 profits, what are potential prices the monopolist could charge?  \nπ = 0 => P = Average Cost => P = 12 or 16 (see figure)  \n7. If the monopolist can perfectly price discriminate what are his profits then? 52  \n8. What is consumer surplus with perfect price discrimination? 0  \n9. Suppose that the Government tries to extract some of the monopoly profits by a tax of $4 per unit sold. How much of the tax is paid by consumers? What is the deadweight loss from the tax?  \nNow for the monopolist, MC = 8, so Q* = 4, P* = 16. Half tax paid by consumers. DWL = .5x1x2 + 1*10= 11 (this will be explained Thursday evening)  \n10. Suppose instead the government imposes a lump sum profits tax of $20. What is the effect on prices to consumers in this case? What is the deadweight loss from this tax?  \nNo change to consumer prices since MC the same.  \nNo deadweight loss in the short run (but in the long run the monopolist will leave the market)  \n11. When you go to the web site Expedia (or Orbitz) to buy a plane ticket one screen asks the following question: “Is the traveler an ADULT, CHILD or SENIOR (65 or older) .”Why do children get offered lower prices for airline tickets?  \nA. Children are lighter, so imply a lower marginal cost to airlines.  \nB. Airlines are legally required to offer lower fares to children  \nC. Families with children typically have more elastic demand.  \nD. Families with children are typically poorer than people without.  \nE. Because families have multiple people the airline gets more profit from being able to sell two or more tickets to them, so offers a discount.  \n12. Another page on Expedia used to offer a lower fare if the traveler was willing to buy the ticket before the airline or the route or the time of departure on the day specified is revealed. This shows that the airlines are engaging in what type of price discrimination?  \nA. Perfect price discrimination.  \nB. MR=MC  \nC. Price discrimination through hurdles  \nD. Two part tariffs  \nE. Market segmentation through observed characteristics  \n13 If the long run cost function for a firm is LTC = 9 + 2q + 4q2 then this firm exhibits  \nA. Increasing returns to scale  \nB. Constant returns to scale  \nC. Diminishing Returns to Scale  \nD. Both A and B  \nE. Both A and C  \n14. In question 13, the firms long run marginal cost is  \nA. 2  \nB. 4  \nC. 2q  \nD. 4q  \nE. 2+8q  \n15. In question 13, the firms long run average cost is (9/q) + 2 +4q. This is minimized when Q equals  \nA. 0  \nB. 3/2  \nC. 2  \nD. 4  \nE. 9/4  \n(set MC = AC)  \n16. What factors would be expected to lead to general increasing returns to scale?  \nA. Large setup costs in production  \nB. Gains from specialization  \nC. The more rapid increase of volume than area when production is scaled up  \nD. Gains from market power in purchasing production inputs  \nE. All of A, B, C and D  \n17. We would expect most production activities to exhibit increasing returns to scale just through the physics of production processes. Yet many sectors ofthe economy remain competitive. The reasons one firm does not ","cbCaivykwYK17DE5","https://ap.wps.com/l/cbCaivykwYK17DE5","pdf",194858,"English","# Practice Questions for Midterm 3\n## Monopolist pricing and welfare\n## Price discrimination and regulation\n## Taxation effects\n## Multiple-choice economics problems","[{\"question\":\"How is the monopolist’s marginal revenue expressed as a function of quantity?\",\"answer\":\"From the demand curve and linear structure, the solution states MR = 24 - 4Q.\"},{\"question\":\"What are the profit-maximizing price and quantity for the monopolist?\",\"answer\":\"Using MR = MC, the answers give Q* = 5 and P* = 14.\"},{\"question\":\"What determines how a $4-per-unit tax is split between consumers and the monopolist?\",\"answer\":\"The document computes the new monopolist optimal outcome under the tax (with MC shifting to MC = 8), then concludes that consumers pay half of the tax.\"}]","Practice Midterm 3 - Answers | PDF",1790397673,13]