I think the distance (as the crow flies) from Paris, France to Vienna, Austria is in the range of:

1
I think the distance (as the crow flies) from
Paris, France to Vienna, Austria is in the range
of

1. 2000-2500 miles
2. 1200-2000 miles
3. 900-1200 miles
4. 700-900 miles
5. 600-700 miles
6. 500-600 miles
7. 400-500 miles
8. 300-400 miles
9. 200-300 miles

2
The distance (as the crow flies) from Paris,
France to Vienna, Austria is in the range of

1. 2000-2500 miles
2. 1200-2000 miles
3. 900-1200 miles
4. 700-900 miles
5. 600-700 miles
6. 500-600 miles
7. 400-500 miles
8. 300-400 miles
9. 200-300 miles

3
The distance (as the crow flies) from Paris,
France to Vienna, Austria is in the range of

1. 2000-2500 miles
2. 1200-2000 miles
3. 900-1200 miles
4. 700-900 miles
5. 600-700 miles
6. 500-600 miles
7. 400-500 miles
8. 300-400 miles
9. 200-300 miles

4
What is it exactly? 642 miles

5
Based on Weds. Survey, what price should Apple
set to maximize its total revenue from sales of
IPODs to this class?

1. 400
2. 350
3. 300
4. 250
5. 200
6. 150

6
If you havent done so, go to the class website.
Find this assignment. Get the data from our
survey and answer the questions that are posed
there. We will ask these questions as clicker
questions in class on Monday.
7
A monopolist is currently selling 50 units at
100 each. In order to sell one more unit, he
would have to cut the price to 99. What is his
marginal revenue?

1. 100
2. 99
3. 75
4. 49
5. 29
6. 0

8
Why is that?

• To sell one more unit he needs to cut price by
  1. He gets 99 for the extra unit he sells,
  but he loses 1 on each of the 50 units he was
  selling at 100. So his marginal revenue is
  99-5049.

9
If demand for a monopolists product is inelastic
at the current price, he could increase his
profits by reducing output, even if his marginal
cost is very small.

1. True
2. False

10
Why is that?

• If demand is inelastic, then a small price
  increase and the resulting quantity decrease must
  increase revenue.
• So by cutting back quantity he increases revenue.
  Reducing quantity certainly wont increase his
  costs, so his profit must increase.

11
The demand curve has the equation P100-2Q. At
what quantity is marginal revenue equal to zero?

1. Q80
2. Q60
3. Q50
4. Q40
5. Q25

12
With linear demand, MR is a straight line with
same intercept, twice as steep as
demand.MR100-4Q
100
Green Line Demand Curve 100-2Q
Pink Line MR curve, 100-4Q
25
50