微信客服：xiaoxionga100
微信客服：ITCS521
程序代写案例-ECON90015
时间：2022-06-18
ECON90015
Semester 2, 2021
Final Exam
9 Nov 2021
Managerial Economics Final Exam
You have 3.5 hours (30 minutes of reading time plus 3 hours of writing time) to complete
this exam from when it commences. Please, monitor the allotted time and budget time
to submit your answers in LMS.
You are permitted to upload and check files for up to 30 minutes after the scheduled
completion time. File uploads must be fully completed by that time (for example, an
exam scheduled at 3:00pm with 180 minutes writing time, 30 minutes reading time, and
30 minutes of upload allowance will have a final completion time of 7:00pm). You will
not be able to make a submission after that time. If you could not submit on time due
to technical difficulties, you may need to apply for technical/special consideration with
supporting documentation.
This exam paper has 4 problems and 5 numbered pages (including this one).
Answer all questions to the best of your ability, showing your work and providing
sufficient explanation. No credit will be given to an answer without an explanation.
Partial credit will be given to partial or partially correct answers.
Start each problem on a new page and make sure your answers to all subparts of
every problem are next to each other in the file you submit. You do not need to start
every (a), (b), (c). . . subpart on a new page.
When you are done, submit a single file within LMS.
With the exception of any clarifying questions you ask me through the exam-support tool
in LMS, you MAY NOT discuss this exam with anyone else from within or from
outside the subject. Doing so would be a severe violation of the University’s academic-
integrity policy, and every occurrence will be investigated. You are, however, allowed to
use your notes, textbooks, lecture slides, and other subject materials.
The exam total is 100 marks. Each problem is worth 25 marks. The point value of each
sub-problem is indicated next to it.
Use these phone numbers for assistance during the exam if you are experiencing technical
difficulties. Inside Australia: 13MELB (13 6352) (select Option 1 for current students,
then Option 1 again for exam enquiries). Outside Australia: +61 3 9035 5511 (select
Option 1 for current students, then Option 1 again for exam enquiries).
Good luck!
Page 1 of 5
1. After the start of the COVID-19 crisis, a lot of liquor and perfume manufacturers switched
to producing hand sanitiser. After that happened, the quantity supplied in a certain
market for hand sanitiser was given by
Qs = −12.17 + 0.1Phs − 0.03Pg − 0.07Pp + 0.4N,
where Qs is the quantity of hand sanitiser supplied measured in hundreds of litres, Phs is
the price of hand sanitiser per 100 litres, Pg is the price of gin per bottle, Pp is the price
of plastic (input needed for the manufacture of hand sanitiser containers) per tonne, and
N is the number of distilleries that can produce hand sanitiser.
(a) (3 marks) Keeping in mind that gin is not an input good for the production of hand
sanitiser, how are hand sanitiser and gin related as goods? Justify your answer.
(b) (3 marks) The price of gin is fixed at $48 per bottle, the price of plastic is $17 per
tonne, and there are 27 distilleries that can produce hand sanitiser in the market.
Compute the expression for the supply curve of hand sanitiser.
(c) (4 marks) Demand in the market for hand sanitiser is initially given by Qd = 20 −
0.2Phs. Compute the initial equilibrium price P
∗ and equilibrium quantity traded Q∗
in the market for hand sanitiser. Plot the supply-demand diagram and the market
equilibrium.
(d) (4 marks) Compute the point elasticity of supply of hand sanitiser at the initial
equilibrium price P ∗. Does your computation indicate that supply is elastic, inelastic,
or neither? (The methods for computing the elasticity of supply are identical to the
methods for computing the elasticity of demand.)
(e) (4 marks) Demand in the market for hand sanitiser later increases to Qd = 20 −
0.1Phs. Compute the new equilibrium price P
∗∗ and equilibrium quantity traded Q∗∗
in the market. Plot the supply-demand diagram and the market equilibrium.
(f) (4 marks) Compute the arc elasticity of supply of hand sanitiser as the price changed
from the initial equilibrium price P ∗ to the new equilibrium price P ∗∗. Does your
computation indicate that supply is elastic, inelastic, or neither?
(g) (3 marks) Without computing the revenue, determine whether the increase in
demand results in an increase or a decrease in the total revenue in the market for
hand sanitiser. Does your answer depend on the elasticity of supply? Describe how,
if it does, or explain why not, if it does not.
Page 2 of 5
2. Consider the market for a certain paper product in Melbourne. There are 5 million
potential consumers of the product. Before the COVID-19 pandemic started, 2.5 million
of them used a close substitute at work and did not demand the paper product. Each
of the other 2.5 million consumers had an individual inverse demand curve given by
P = 2 − 0.5q, where q is the individual quantity demanded (measured in number of
packs) and P is the price in dollars per pack. After the pandemic started, all 5 million
consumers demanded the product and each one of their individual inverse demand curves
was given by P = 4− q. Market supply for the product is given by Qs = 3, 000, 000× P .
(a) (3 marks) Find the total market demand before the pandemic started.
(b) (3 marks) Find the total market demand after the pandemic started.
(c) (4 marks) Find the pre-pandemic equilibrium price and quantity. Plot the supply-
demand diagram and the market equilibrium.
(d) (4 marks) Find the equilibrium price and quantity after the pandemic started assum-
ing that supply did not change. Plot the supply-demand diagram and the market
equilibrium.
(e) (5 marks) Alarmed by the price increase after the pandemic’s start, the Lord Mayor
of Melbourne proposes an anti price-gouging law. The law would mandate that
the price of the product cannot rise more than 20% over its pre-pandemic levels.
Calculate the quantity traded, the price it is traded at, and the dead-weight loss if
the law is enacted.
(f) (6 marks) Independently from the Lord Mayor, the Premier of Victoria is considering
a rationing scheme. The scheme would allow each consumer to purchase no more
than a single pack of the paper product. What would the quantity traded and the
dead-weight loss be if the proposed rationing scheme is enacted (and the anti price-
gouging law is not)? Which of the two policies results in less inefficiency? Why?
Page 3 of 5
3. The pharmaceutical conglomerate Pfizeneca has discovered a new vaccine for COVID-
19, called covbegonium. The vaccine is subsequently approved in Australia and New
Zealand so Pfizeneca can sell its vaccine there. In Australia, demand for covbegonium is
QAU = 20.5 − PAU , where QAU is the quantity demanded when the price in Australia is
PAU . In New Zealand, demand for covbegonium is QNZ = 5 − PNZ , where QNZ is the
quantity demanded when the price in New Zealand is PNZ , denominated in Australian
dollars. (All monetary amounts in this problem are given in Australian dollars.) Pfizeneca
has a single manufacturing plant in Australia and its marginal cost is constant at $10.
In this problem you can ignore the cost of transporting covbegonium from the site of
manufacture to consumers, regardless of where they are located.
(a) (6 marks) Assuming that Pfizeneca can successfully charge different prices in Aus-
tralia and in New Zealand, what profit-maximising prices PAU and PNZ would it
charge in each of the two countries? What quantity of covbegonium would it sell in
each of the two countries? Provide intuition for your answer.
(b) (7 marks) Covbegonium is later approved for sale in Canada as well. Canadian
demand for covbegonium is QCA = 20.5−PCA, where QCA is the quantity demanded
when the price in Canada is PCA. Assuming that Pfizeneca can successfully charge
different prices in Australia, in Canada, and in New Zealand, what profit-maximising
prices PAU , PCA, and PNZ would it charge in each of the three countries? What
quantity of covbegonium would it sell in each of the three countries?
(c) (6 marks) After building a second manufacturing plant in New Zealand, Pfizeneca
can now produce covbegonium at either or both of its manufacturing plants. The
marginal cost of producing covbegonium at the new plant is 0.1Q, where Q is the
total quantity of covbegonium produced at the plant. The marginal cost
at the old plant remains $10. At the same time, Pfizeneca finds itself temporarily
unable to sell covbegonium in Canada due to import restrictions. Assuming that
Pfizeneca can successfully charge different prices in Australia and in New Zealand,
what profit-maximising prices PAU and PNZ would it charge in each of the two
countries? What quantity of covbegonium would it sell in each of the two countries?
How much would Pfizeneca produce at each of its plants and why? (Hint 1: You
may want to think about the last question first. Hint 2: Using the profit-maximising
condition for Pfizeneca, you may want to express Q∗AU as a function of Q
∗
NZ , where
Q∗·· denotes the profit-maximising quantity for the respective country.)
(d) (6 marks) Eventually, Canadian import restrictions are lifted and Pfizeneca can sell
covbegonium there again. Assuming that Pfizeneca can successfully charge different
prices in Australia, in Canada, and in New Zealand, what profit-maximising prices
PAU , PCA, and PNZ would it charge in each of the three countries? What quantity of
covbegonium would it sell in each of the three countries? How much would Pfizeneca
produce at each of its plants and why? Why did the profit-maximising quantity sold
in New Zealand change relative to part (c)?
Page 4 of 5
4. Two firms compete by choosing price. Their demand functions are
Q1 = 6− P1 + 0.5P2,
and
Q2 = 6 + 0.5P1 − P2,
where P1 and P2 are the prices charged by each firm, respectively, and Q1 and Q2 are the
resulting quantities demanded. Marginal costs are constant and equal to zero for both
firms.
(a) (4 marks) What is the relationship between the two goods? Are they substitutes,
complements, neither, or both? Explain your answer.
(b) (12 marks) Suppose the two firms set their prices at the same time. Find the resulting
Nash equilibrium (i.e. the outcome, under which each firm is choosing a price that
maximises its profits given the other firm’s chosen price). What price will each firm
charge in this equilibrium, and what quantity will it sell?
(c) (9 marks) Suppose Firm 1 sets its price first and announces that price, denoted P1.
Then, Firm 2 observes P1 and, based on that, decides on its price, denoted by P2.
Find the rollback equilibrium of the game that represents this strategic situation.
What price will each firm charge in this equilibrium, and what quantity will it sell?
(Hint: Find how Firm 2 would respond to each possible choice of Firm 1 and then
incorporate this into Firm 1’s residual demand function to determine its decision at
the beginning of the game.)
Page 5 of 5
Semester 2, 2021
Final Exam
9 Nov 2021
Managerial Economics Final Exam
You have 3.5 hours (30 minutes of reading time plus 3 hours of writing time) to complete
this exam from when it commences. Please, monitor the allotted time and budget time
to submit your answers in LMS.
You are permitted to upload and check files for up to 30 minutes after the scheduled
completion time. File uploads must be fully completed by that time (for example, an
exam scheduled at 3:00pm with 180 minutes writing time, 30 minutes reading time, and
30 minutes of upload allowance will have a final completion time of 7:00pm). You will
not be able to make a submission after that time. If you could not submit on time due
to technical difficulties, you may need to apply for technical/special consideration with
supporting documentation.
This exam paper has 4 problems and 5 numbered pages (including this one).
Answer all questions to the best of your ability, showing your work and providing
sufficient explanation. No credit will be given to an answer without an explanation.
Partial credit will be given to partial or partially correct answers.
Start each problem on a new page and make sure your answers to all subparts of
every problem are next to each other in the file you submit. You do not need to start
every (a), (b), (c). . . subpart on a new page.
When you are done, submit a single file within LMS.
With the exception of any clarifying questions you ask me through the exam-support tool
in LMS, you MAY NOT discuss this exam with anyone else from within or from
outside the subject. Doing so would be a severe violation of the University’s academic-
integrity policy, and every occurrence will be investigated. You are, however, allowed to
use your notes, textbooks, lecture slides, and other subject materials.
The exam total is 100 marks. Each problem is worth 25 marks. The point value of each
sub-problem is indicated next to it.
Use these phone numbers for assistance during the exam if you are experiencing technical
difficulties. Inside Australia: 13MELB (13 6352) (select Option 1 for current students,
then Option 1 again for exam enquiries). Outside Australia: +61 3 9035 5511 (select
Option 1 for current students, then Option 1 again for exam enquiries).
Good luck!
Page 1 of 5
1. After the start of the COVID-19 crisis, a lot of liquor and perfume manufacturers switched
to producing hand sanitiser. After that happened, the quantity supplied in a certain
market for hand sanitiser was given by
Qs = −12.17 + 0.1Phs − 0.03Pg − 0.07Pp + 0.4N,
where Qs is the quantity of hand sanitiser supplied measured in hundreds of litres, Phs is
the price of hand sanitiser per 100 litres, Pg is the price of gin per bottle, Pp is the price
of plastic (input needed for the manufacture of hand sanitiser containers) per tonne, and
N is the number of distilleries that can produce hand sanitiser.
(a) (3 marks) Keeping in mind that gin is not an input good for the production of hand
sanitiser, how are hand sanitiser and gin related as goods? Justify your answer.
(b) (3 marks) The price of gin is fixed at $48 per bottle, the price of plastic is $17 per
tonne, and there are 27 distilleries that can produce hand sanitiser in the market.
Compute the expression for the supply curve of hand sanitiser.
(c) (4 marks) Demand in the market for hand sanitiser is initially given by Qd = 20 −
0.2Phs. Compute the initial equilibrium price P
∗ and equilibrium quantity traded Q∗
in the market for hand sanitiser. Plot the supply-demand diagram and the market
equilibrium.
(d) (4 marks) Compute the point elasticity of supply of hand sanitiser at the initial
equilibrium price P ∗. Does your computation indicate that supply is elastic, inelastic,
or neither? (The methods for computing the elasticity of supply are identical to the
methods for computing the elasticity of demand.)
(e) (4 marks) Demand in the market for hand sanitiser later increases to Qd = 20 −
0.1Phs. Compute the new equilibrium price P
∗∗ and equilibrium quantity traded Q∗∗
in the market. Plot the supply-demand diagram and the market equilibrium.
(f) (4 marks) Compute the arc elasticity of supply of hand sanitiser as the price changed
from the initial equilibrium price P ∗ to the new equilibrium price P ∗∗. Does your
computation indicate that supply is elastic, inelastic, or neither?
(g) (3 marks) Without computing the revenue, determine whether the increase in
demand results in an increase or a decrease in the total revenue in the market for
hand sanitiser. Does your answer depend on the elasticity of supply? Describe how,
if it does, or explain why not, if it does not.
Page 2 of 5
2. Consider the market for a certain paper product in Melbourne. There are 5 million
potential consumers of the product. Before the COVID-19 pandemic started, 2.5 million
of them used a close substitute at work and did not demand the paper product. Each
of the other 2.5 million consumers had an individual inverse demand curve given by
P = 2 − 0.5q, where q is the individual quantity demanded (measured in number of
packs) and P is the price in dollars per pack. After the pandemic started, all 5 million
consumers demanded the product and each one of their individual inverse demand curves
was given by P = 4− q. Market supply for the product is given by Qs = 3, 000, 000× P .
(a) (3 marks) Find the total market demand before the pandemic started.
(b) (3 marks) Find the total market demand after the pandemic started.
(c) (4 marks) Find the pre-pandemic equilibrium price and quantity. Plot the supply-
demand diagram and the market equilibrium.
(d) (4 marks) Find the equilibrium price and quantity after the pandemic started assum-
ing that supply did not change. Plot the supply-demand diagram and the market
equilibrium.
(e) (5 marks) Alarmed by the price increase after the pandemic’s start, the Lord Mayor
of Melbourne proposes an anti price-gouging law. The law would mandate that
the price of the product cannot rise more than 20% over its pre-pandemic levels.
Calculate the quantity traded, the price it is traded at, and the dead-weight loss if
the law is enacted.
(f) (6 marks) Independently from the Lord Mayor, the Premier of Victoria is considering
a rationing scheme. The scheme would allow each consumer to purchase no more
than a single pack of the paper product. What would the quantity traded and the
dead-weight loss be if the proposed rationing scheme is enacted (and the anti price-
gouging law is not)? Which of the two policies results in less inefficiency? Why?
Page 3 of 5
3. The pharmaceutical conglomerate Pfizeneca has discovered a new vaccine for COVID-
19, called covbegonium. The vaccine is subsequently approved in Australia and New
Zealand so Pfizeneca can sell its vaccine there. In Australia, demand for covbegonium is
QAU = 20.5 − PAU , where QAU is the quantity demanded when the price in Australia is
PAU . In New Zealand, demand for covbegonium is QNZ = 5 − PNZ , where QNZ is the
quantity demanded when the price in New Zealand is PNZ , denominated in Australian
dollars. (All monetary amounts in this problem are given in Australian dollars.) Pfizeneca
has a single manufacturing plant in Australia and its marginal cost is constant at $10.
In this problem you can ignore the cost of transporting covbegonium from the site of
manufacture to consumers, regardless of where they are located.
(a) (6 marks) Assuming that Pfizeneca can successfully charge different prices in Aus-
tralia and in New Zealand, what profit-maximising prices PAU and PNZ would it
charge in each of the two countries? What quantity of covbegonium would it sell in
each of the two countries? Provide intuition for your answer.
(b) (7 marks) Covbegonium is later approved for sale in Canada as well. Canadian
demand for covbegonium is QCA = 20.5−PCA, where QCA is the quantity demanded
when the price in Canada is PCA. Assuming that Pfizeneca can successfully charge
different prices in Australia, in Canada, and in New Zealand, what profit-maximising
prices PAU , PCA, and PNZ would it charge in each of the three countries? What
quantity of covbegonium would it sell in each of the three countries?
(c) (6 marks) After building a second manufacturing plant in New Zealand, Pfizeneca
can now produce covbegonium at either or both of its manufacturing plants. The
marginal cost of producing covbegonium at the new plant is 0.1Q, where Q is the
total quantity of covbegonium produced at the plant. The marginal cost
at the old plant remains $10. At the same time, Pfizeneca finds itself temporarily
unable to sell covbegonium in Canada due to import restrictions. Assuming that
Pfizeneca can successfully charge different prices in Australia and in New Zealand,
what profit-maximising prices PAU and PNZ would it charge in each of the two
countries? What quantity of covbegonium would it sell in each of the two countries?
How much would Pfizeneca produce at each of its plants and why? (Hint 1: You
may want to think about the last question first. Hint 2: Using the profit-maximising
condition for Pfizeneca, you may want to express Q∗AU as a function of Q
∗
NZ , where
Q∗·· denotes the profit-maximising quantity for the respective country.)
(d) (6 marks) Eventually, Canadian import restrictions are lifted and Pfizeneca can sell
covbegonium there again. Assuming that Pfizeneca can successfully charge different
prices in Australia, in Canada, and in New Zealand, what profit-maximising prices
PAU , PCA, and PNZ would it charge in each of the three countries? What quantity of
covbegonium would it sell in each of the three countries? How much would Pfizeneca
produce at each of its plants and why? Why did the profit-maximising quantity sold
in New Zealand change relative to part (c)?
Page 4 of 5
4. Two firms compete by choosing price. Their demand functions are
Q1 = 6− P1 + 0.5P2,
and
Q2 = 6 + 0.5P1 − P2,
where P1 and P2 are the prices charged by each firm, respectively, and Q1 and Q2 are the
resulting quantities demanded. Marginal costs are constant and equal to zero for both
firms.
(a) (4 marks) What is the relationship between the two goods? Are they substitutes,
complements, neither, or both? Explain your answer.
(b) (12 marks) Suppose the two firms set their prices at the same time. Find the resulting
Nash equilibrium (i.e. the outcome, under which each firm is choosing a price that
maximises its profits given the other firm’s chosen price). What price will each firm
charge in this equilibrium, and what quantity will it sell?
(c) (9 marks) Suppose Firm 1 sets its price first and announces that price, denoted P1.
Then, Firm 2 observes P1 and, based on that, decides on its price, denoted by P2.
Find the rollback equilibrium of the game that represents this strategic situation.
What price will each firm charge in this equilibrium, and what quantity will it sell?
(Hint: Find how Firm 2 would respond to each possible choice of Firm 1 and then
incorporate this into Firm 1’s residual demand function to determine its decision at
the beginning of the game.)
Page 5 of 5
