科目：個體經濟學
教授：劉鶯釧
試別：93學年度下學期期中考
時間：2005年4月21日
by lovemathieu
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1.(20%) Answer the following questions, illustrating them with appropriate and
  carfully drawn diagrams.

  (a) If neither demand nor supply is perfectly inelastic, will a per-unit tax
      always result in a welfare loss? Explain.

  (b) What happens when demand is perfectly inelastic? How are consumers, firms,
      and the government affected by a per-unit tax this case? Is there a
      welfare loss of not?

  (c) What happens when supply is perfectly inelastic? How are consumers, firms,
      and the government affected? Is there a welfare loss or not?


2.(20%)

  (1) Answer the following questions, illustrating them with appropriate and
      carefully drawn diagrams.

      (a) Monopolists are guaranteed long-run profits. Evaluate this statement.

      (b) Expain why a profit-maximizing monopolist will not produce an output
          where demand is inelastic.

  (2) Calculate the Lerner Index for each of the following measures of
      elasticity of demand. (a) 2 (b) Infinity


3.(20%) Suppose ABC Corporation is a monopolist with three plant facilities.
  The marginal cost for Facility A is 5 + Qa, the marginal cost for Facility B
  is 8 + Qb, and the marginal cost for Facility C is 10 + Qc. The demand for
  the industry is P = 14 - 0.5 Q. How much should ABC Corporation produce to
  maximize profit? How much should be produced in each facility? What price
  should the firm charge for each unit of output?


4.(30%) Adults have the following demand curve for Broadway show tickets:
  Pa = 200 - Qa and children have the demand: Pc = 100 - (1/2)Qc. MC = AC = 20.

  (a) Draw a graph and solve for the price charged and number of tickets sold
      in each market with third-degree price discrimination.

  (b) Solve for the elasticity of demand for adults and children at their
      respective equilibrium points with third-degree price discrimination. In
      which market is demand more elastic at the equilibrium price / quantity
      combination?

  (c) Assume that the Broadway theaters want to charge a single uniform price
      in both markets. Calculate the uniform price charged and the total number
      of tickets sold. Draw a graph of the combined demand and show the uniform
      price charged and  total number of ticket sold.

  (d) Compare monopoly profit with price discrimination from question (a) with
      profit in question (c). Which pricing method will the theater prefer?


5.(20%) Consider a monopolist with the demand curve P = 200 - 2Q. The
  monopolist's marginal cost (MC) is equal to 2. Draw a graph and solve the
  following questions.

  (a) Solve for the non-discriminating monopolist's price and quantity.

  (b) Now assume that the monopolist practices first-degree price
      discrimination. What is the total number of goods sold under this pricing
      policy? What is the lowest price charged for the good?

  (c) Calculate total welfare under the two pricing schemes calculated in (a)
      and (b). In which pricing policy is total welfare higher?