ms3033_2026T2_ET_FN.pdf
Managerial Economics · End Term · May 2026 FN
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Questions and published explanations below are available without starting a test. Some questions may not have a published solution yet.
Question 2 NAT · 1.0 marks
Suppose two firms operate in a market and can produce at a constant average (and marginal) cost
of AC = MC = $8. Let Q1 be the output of the first firm and Q2 be the output of the second. Market
demand is given by Q1+ Q2 = 80 - P. Assuming that the firms are competing as per the Cournot
competition, find out the equilibrium quantity for each firm, equilibrium price and profit (π1, π2) of
each firm.
Based on the above data, answer the given subquestions.
Q1*=……..
A published solution is not available for this question yet.
Question 3 NAT · 1.0 marks
Suppose two firms operate in a market and can produce at a constant average (and marginal) cost
of AC = MC = $8. Let Q1 be the output of the first firm and Q2 be the output of the second. Market
demand is given by Q1+ Q2 = 80 - P. Assuming that the firms are competing as per the Cournot
competition, find out the equilibrium quantity for each firm, equilibrium price and profit (π1, π2) of
each firm.
Based on the above data, answer the given subquestions.
Q2*=……………
A published solution is not available for this question yet.
Question 4 NAT · 1.0 marks
Suppose two firms operate in a market and can produce at a constant average (and marginal) cost
of AC = MC = $8. Let Q1 be the output of the first firm and Q2 be the output of the second. Market
demand is given by Q1+ Q2 = 80 - P. Assuming that the firms are competing as per the Cournot
competition, find out the equilibrium quantity for each firm, equilibrium price and profit (π1, π2) of
each firm.
Based on the above data, answer the given subquestions.
P*=............
A published solution is not available for this question yet.
Question 5 NAT · 1.0 marks
Suppose two firms operate in a market and can produce at a constant average (and marginal) cost
of AC = MC = $8. Let Q1 be the output of the first firm and Q2 be the output of the second. Market
demand is given by Q1+ Q2 = 80 - P. Assuming that the firms are competing as per the Cournot
competition, find out the equilibrium quantity for each firm, equilibrium price and profit (π1, π2) of
each firm.
Based on the above data, answer the given subquestions.
π1=………
A published solution is not available for this question yet.
Question 6 NAT · 1.0 marks
Suppose two firms operate in a market and can produce at a constant average (and marginal) cost
of AC = MC = $8. Let Q1 be the output of the first firm and Q2 be the output of the second. Market
demand is given by Q1+ Q2 = 80 - P. Assuming that the firms are competing as per the Cournot
competition, find out the equilibrium quantity for each firm, equilibrium price and profit (π1, π2) of
each firm.
Based on the above data, answer the given subquestions.
π2=…….
A published solution is not available for this question yet.
Question 7 NAT · 1.0 marks
Suppose two firms operate in a market and can produce at a constant average (and marginal) cost
of AC = MC = $8. Let Q1 be the output of the first firm and Q2 be the output of the second. Market
demand is given by Q1+ Q2 = 80 - P. Assuming that the firms are competing as per the Cournot
competition, find out the equilibrium quantity for each firm, equilibrium price and profit (π1, π2) of
each firm.
Based on the above data, answer the given subquestions.
Now suppose that the two firms are competing in the Stackelberg manner where one of the firms
makes its output decision before the other. Suppose Firm 1 is the Stackelberg leader (i.e., makes
its output decisions before Firm 2). Calculate the equilibrium quantity for the firms, equilibrium
market price and profits (π1, π2) of both the firms in equilibrium.
Q1………..
A published solution is not available for this question yet.
Question 8 NAT · 1.0 marks
Suppose two firms operate in a market and can produce at a constant average (and marginal) cost
of AC = MC = $8. Let Q1 be the output of the first firm and Q2 be the output of the second. Market
demand is given by Q1+ Q2 = 80 - P. Assuming that the firms are competing as per the Cournot
competition, find out the equilibrium quantity for each firm, equilibrium price and profit (π1, π2) of
each firm.
Based on the above data, answer the given subquestions.
Now suppose that the two firms are competing in the Stackelberg manner where one of the firms
makes its output decision before the other. Suppose Firm 1 is the Stackelberg leader (i.e., makes
its output decisions before Firm 2). Calculate the equilibrium quantity for the firms, equilibrium
market price and profits (π1, π2) of both the firms in equilibrium.
Q2………………
A published solution is not available for this question yet.
Question 9 NAT · 1.0 marks
Suppose two firms operate in a market and can produce at a constant average (and marginal) cost
of AC = MC = $8. Let Q1 be the output of the first firm and Q2 be the output of the second. Market
demand is given by Q1+ Q2 = 80 - P. Assuming that the firms are competing as per the Cournot
competition, find out the equilibrium quantity for each firm, equilibrium price and profit (π1, π2) of
each firm.
Based on the above data, answer the given subquestions.
Now suppose that the two firms are competing in the Stackelberg manner where one of the firms
makes its output decision before the other. Suppose Firm 1 is the Stackelberg leader (i.e., makes
its output decisions before Firm 2). Calculate the equilibrium quantity for the firms, equilibrium
market price and profits (π1, π2) of both the firms in equilibrium.
P*=............
A published solution is not available for this question yet.
Question 10 NAT · 1.0 marks
Suppose two firms operate in a market and can produce at a constant average (and marginal) cost
of AC = MC = $8. Let Q1 be the output of the first firm and Q2 be the output of the second. Market
demand is given by Q1+ Q2 = 80 - P. Assuming that the firms are competing as per the Cournot
competition, find out the equilibrium quantity for each firm, equilibrium price and profit (π1, π2) of
each firm.
Based on the above data, answer the given subquestions.
Now suppose that the two firms are competing in the Stackelberg manner where one of the firms
makes its output decision before the other. Suppose Firm 1 is the Stackelberg leader (i.e., makes
its output decisions before Firm 2). Calculate the equilibrium quantity for the firms, equilibrium
market price and profits (π1, π2) of both the firms in equilibrium.
π1…………
A published solution is not available for this question yet.
Question 11 NAT · 1.0 marks
Suppose two firms operate in a market and can produce at a constant average (and marginal) cost
of AC = MC = $8. Let Q1 be the output of the first firm and Q2 be the output of the second. Market
demand is given by Q1+ Q2 = 80 - P. Assuming that the firms are competing as per the Cournot
competition, find out the equilibrium quantity for each firm, equilibrium price and profit (π1, π2) of
each firm.
Based on the above data, answer the given subquestions.
Now suppose that the two firms are competing in the Stackelberg manner where one of the firms
makes its output decision before the other. Suppose Firm 1 is the Stackelberg leader (i.e., makes
its output decisions before Firm 2). Calculate the equilibrium quantity for the firms, equilibrium
market price and profits (π1, π2) of both the firms in equilibrium.
π2………
A published solution is not available for this question yet.
Question 12 NAT · 1.0 marks
In a market for dry cleaning, the inverse market demand function is given by P = 150 - Q and the
(private) marginal cost of production for the aggregation of all dry cleaning firms is given by MC
=30 + Q. Finally, the pollution generated by the dry cleaning process creates external damages
given by the marginal external cost curve MEC = 2Q.
Based on the above data, answer the given subquestions.
Calculate the output level and price of dry cleaning if it is produced under competitive conditions
without regulation.
Q*=.............
A published solution is not available for this question yet.
Question 13 NAT · 1.0 marks
In a market for dry cleaning, the inverse market demand function is given by P = 150 - Q and the
(private) marginal cost of production for the aggregation of all dry cleaning firms is given by MC
=30 + Q. Finally, the pollution generated by the dry cleaning process creates external damages
given by the marginal external cost curve MEC = 2Q.
Based on the above data, answer the given subquestions.
Calculate the output level and price of dry cleaning if it is produced under competitive conditions
without regulation.
P*=.............
A published solution is not available for this question yet.
Question 14 NAT · 2.0 marks
In a market for dry cleaning, the inverse market demand function is given by P = 150 - Q and the
(private) marginal cost of production for the aggregation of all dry cleaning firms is given by MC
=30 + Q. Finally, the pollution generated by the dry cleaning process creates external damages
given by the marginal external cost curve MEC = 2Q.
Based on the above data, answer the given subquestions.
Determine the socially efficient price and output of dry cleaning.
QS=.............
A published solution is not available for this question yet.
Question 15 NAT · 1.0 marks
In a market for dry cleaning, the inverse market demand function is given by P = 150 - Q and the
(private) marginal cost of production for the aggregation of all dry cleaning firms is given by MC
=30 + Q. Finally, the pollution generated by the dry cleaning process creates external damages
given by the marginal external cost curve MEC = 2Q.
Based on the above data, answer the given subquestions.
Determine the socially efficient price and output of dry cleaning.
PS=.............
A published solution is not available for this question yet.
Question 16 NAT · 2.0 marks
In a market for dry cleaning, the inverse market demand function is given by P = 150 - Q and the
(private) marginal cost of production for the aggregation of all dry cleaning firms is given by MC
=30 + Q. Finally, the pollution generated by the dry cleaning process creates external damages
given by the marginal external cost curve MEC = 2Q.
Based on the above data, answer the given subquestions.
Determine the tax (per unit) that would result in a competitive market producing the socially
efficient output.
t=.............
A published solution is not available for this question yet.
Question 17 NAT · 2.0 marks
In a market for dry cleaning, the inverse market demand function is given by P = 150 - Q and the
(private) marginal cost of production for the aggregation of all dry cleaning firms is given by MC
=30 + Q. Finally, the pollution generated by the dry cleaning process creates external damages
given by the marginal external cost curve MEC = 2Q.
Based on the above data, answer the given subquestions.
Calculate the output and price of dry cleaning if it is produced under monopolistic conditions
without regulation.
Qm………….
A published solution is not available for this question yet.
Question 18 NAT · 1.0 marks
In a market for dry cleaning, the inverse market demand function is given by P = 150 - Q and the
(private) marginal cost of production for the aggregation of all dry cleaning firms is given by MC
=30 + Q. Finally, the pollution generated by the dry cleaning process creates external damages
given by the marginal external cost curve MEC = 2Q.
Based on the above data, answer the given subquestions.
Calculate the output and price of dry cleaning if it is produced under monopolistic conditions
without regulation.
Pm…………
A published solution is not available for this question yet.
Question 19 MCQ · 1.0 marks
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Based on the above data, answer the given subquestions.
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4
[[IMAGE:b1df55007f8cfd37_9_4]]
[[IMAGE:b1df55007f8cfd37_9_5]]
3
A published solution is not available for this question yet.
Question 20 NAT · 1.0 marks
[[IMAGE:b1df55007f8cfd37_9_2]]
Based on the above data, answer the given subquestions.
What is the cost minimizing input combination if the firm wants to produce 720 units per year? L*=
.............
A published solution is not available for this question yet.
Question 21 NAT · 1.0 marks
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Based on the above data, answer the given subquestions.
What is the cost minimizing input combination if the firm wants to produce 720 units per year?
K*= ..............
A published solution is not available for this question yet.
Question 22 NAT · 1.5 marks
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Based on the above data, answer the given subquestions.
Find the expected value of return on investment A is ……….. (in $)
A published solution is not available for this question yet.
Question 23 NAT · 1.5 marks
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Based on the above data, answer the given subquestions.
The expected value of return on investment B is ……….. (in $)
A published solution is not available for this question yet.
Question 24 NAT · 1.5 marks
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Based on the above data, answer the given subquestions.
Jill has the utility function U=5I, where I denotes the payoff. What is Jill's expected utility from
investment A is EU = ................
A published solution is not available for this question yet.
Question 25 NAT · 1.5 marks
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Based on the above data, answer the given subquestions.
Jill’s expected utility from investment B is EU = .............
A published solution is not available for this question yet.
Question 26 MCQ · 1.5 marks
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Based on the above data, answer the given subquestions.
According to these preferences Jill will prefer
Investment A
Investment B
Jill is indifferent
Cannot be determined
A published solution is not available for this question yet.
Question 27 MCQ · 1.5 marks
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Based on the above data, answer the given subquestions.
Jill's preferences are
Risk averse
Risk loving
Risk neutral
Cannot be determined
A published solution is not available for this question yet.
Question 28 NAT · 1.5 marks
A monopolist faces the demand curve P=25-Q, where P is measured in dollars per unit and Q in
thousands of units. The monopolist has a constant average cost of $5 per unit. Answer the given
subquestions.
What are the monopolist’s profit-maximizing price and quantity? P*= ……
A published solution is not available for this question yet.
Question 29 NAT · 1.5 marks
A monopolist faces the demand curve P=25-Q, where P is measured in dollars per unit and Q in
thousands of units. The monopolist has a constant average cost of $5 per unit. Answer the given
subquestions.
What are the monopolist’s profit-maximizing price and quantity? Q*= ……
A published solution is not available for this question yet.
Question 30 NAT · 1.5 marks
A monopolist faces the demand curve P=25-Q, where P is measured in dollars per unit and Q in
thousands of units. The monopolist has a constant average cost of $5 per unit. Answer the given
subquestions.
The resulting profit will be …………….
A published solution is not available for this question yet.
Question 31 NAT · 1.5 marks
A monopolist faces the demand curve P=25-Q, where P is measured in dollars per unit and Q in
thousands of units. The monopolist has a constant average cost of $5 per unit. Answer the given
subquestions.
The firm’s Lerner index is …………….
A published solution is not available for this question yet.
Question 32 NAT · 1.0 marks
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A published solution is not available for this question yet.
Question 33 MCQ · 1.0 marks
Select the option that describes an indirect network effect
The value of a product or service increases for one group of users as the
number of users on a complementary platform increases.
The value of a product or service increases for an individual user as more
people adopt the same product or service
A product is advertised through a television advertisement
A product is advertised on social media
A published solution is not available for this question yet.
Question 34 MCQ · 1.0 marks
A common resource is
Rival and non excludable
Nonrival and excludable
Nonrival and nonexcludable
Rival and excludable
A published solution is not available for this question yet.
Question 35 MCQ · 1.0 marks
A monopolist never produces in
The elastic region of a market demand curve
The inelastic region of a market demand curve
The whole demand curve
None of these
A published solution is not available for this question yet.
Question 36 MCQ · 1.0 marks
If bad drivers can usually avoid being ticketed by the police, then insurance companies will
Use one’s driving record as a signal
Use one’s driving record as a screening device
Not be able to use one’s driving record as a screening device
Request driving records directly from the police and not the individual
applicant
A published solution is not available for this question yet.
Question 37 MCQ · 1.0 marks
Choose the incorrect statement
Quasi linear preferences are linear in one good and non-linear in the other
good
U=min{ax, by} represents complements
U= ax+by represents substitutes
If a person always chooses three units of one good for one unit of another
good then they have leontief preferences
A published solution is not available for this question yet.
Question 38 MCQ · 1.0 marks
Choose the correct alternative
The fraction of quantity tax paid by buyers rises as supply becomes more own-
price elastic
The fraction of quantity tax paid by buyers rises as demand becomes less own
price elastic
Both the fraction of quantity tax paid by buyers rises as supply becomes more
own-price elastic and the fraction of quantity tax paid by buyers rises as demand becomes less
own price elastic
None of these
A published solution is not available for this question yet.