國立彰化師範大學九十一學年度碩士班招生考試試題
系所：商業教育學系碩士班
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組別：乙組
科目：個體經濟學
共 7 頁，第 1 頁
Multiple Choice (Questions 1-32, 3 points for each question;4 points for question 33)
1. The long-run average cost curve slopes upward if there are
A. some factors without diminishing marginal returns.
B. diseconomies of scope in the management of multiplant operations.
C. economies of scale.
D. diseconomies of scale.
E. no factors without diminishing marginal returns.
2. Whenever average profit is less than marginal profit,
A. average profit declines with increases in output.
B. marginal profit decreases with increases in output.
C. marginal profit increases with increases in output.
D. average profit is maximized.
E. average profit increases with increases in output.
3. For a producer of joint products X and Y with total costs Cx and Cy, an isocost curve
A. isolates Cx and Cy separately.
B. shows points where Cx = Cy.
C. shows points where cost curves are tangent.
D. shows points where Cx / Cy is constant.
E. shows points where Cx + Cy is constant.
4. If Y = 3X/(3X + X2), then dY/dX is
A. [(3 + 2X)3X + 3(3X + X2)]/(3X + X2)2.
B. (3 + 2X)3X/(3X + X2)2.
C. -3/(3 + X)2.
D. [(3 + 2X) - 3(3X + X2)]/(3X + X2)2.
E. (3 + 2X)3X/(3X + X2).
5. If Gulfstream and Bombardier, both producers of upscale jet airplanes, were to collude rather than
compete, consumers could expect
A. higher prices and lower quantites offered for sale.
B. lower prices and lower quantites offered for sale.
C. higher prices and higher quantites offered for sale.
D. each firm to cheat on the cartel agreement.
E. one firm to emerge as the price leader in the oligopoly.
6. A manufacturer of stylish infant clothes, popularly known as grandma-bait, has found that the
demand for its product is given by Q = 100P-1.25A0.5, where P is price and A is advertising
expenditures. If marginal cost is $5, the profit maximizing price is
A. $10.00.
B. $15.00.
C. $20.00.
D. $25.00.
E. $6.25.
國立彰化師範大學九十一學年度碩士班招生考試試題
系所：商業教育學系碩士班
☆☆請在答案紙上作答☆☆
組別：乙組
科目：個體經濟學
共 7 頁，第 2 頁
7. My Big Banana (MBB) has a monopoly in Middletown, United States, on chocolate-sprinkled
monster banana splits. The demand for this delicacy is given by Q = 80 - P. MBB's costs are given
by TC = 40 + 2Q + 2Q2. Its maximum monopoly profits are
A. $267.
B. $467.
C. $627.
D. $672.
E. $674.
8. Capland and Touqueville are the only countries that produce and purchase hats. The Touqueville
fleur exchanges for three Capland droles. The demand for and supply of hats (expressed in local
currencies) are as given in the table below.
Capland
Touqueville
Demand
QC = 600 - 6P
QT = 130 - 2P
Supply
QC = -20 + P (P expressed in droles)
QT = -50 + 2P (P expressed in fleurs)
Which country exports hats and how many does it export?
A. Touqueville exports 24 hats.
B. Capland exports 32 hats.
C. Touqueville exports 52 hats.
D. Capland exports 52 hats.
E. Touqueville exports 66 hats.
9. Given the following payoff matrix, what will A's profits be?
B's Strategies
A's Strategies
Raise price
Lower price
Enter
(A gets 1, B gets 10)
(A gets 2, B gets 6)
A. 1
B. 2
C. 3
D. 4
E. Unknown until B's action is observed
Don't Enter
(A gets 4, B gets 5)
(A gets 3, B gets 4)
國立彰化師範大學九十一學年度碩士班招生考試試題
系所：商業教育學系碩士班
☆☆請在答案紙上作答☆☆
組別：乙組
科目：個體經濟學
共 7 頁，第 3 頁
10. Pungent Pig Farm wants to minimize the cost of feeding its stock. It has determined that to raise a
piglet to be an adult pig requires 100,000 calories and 2,000 units of dietary fiber. Pigs are fed corn
and oats. Each unit of corn contains 200 calories and 1 unit of dietary fiber and costs 2¢. Each unit
of oats contains 100 calories and 3 units of dietary fiber and costs 1.5¢. What is the minimum cost of
raising a piglet to full pighood?
A. $40.00
B. $18.00
C. $13.67
D. $13.00
E. $15.00
11. If a firm uses optimal transfer pricing between production division A and marketing division B, and a
competitive external market for the output of division A exists, then production division A will
surely
A. make positive economic profits.
B. make normal economic profits.
C. sell at marginal costs.
D. sell at the external price.
E. sell at less than the external price.
12. The law of diminishing marginal returns states that
A. the marginal product of labor declines as all inputs are increased.
B. production functions exhibit decreasing returns to scale.
C. the marginal product of labor returns as more capital is used.
D. the marginal product of a factor eventually diminishes as more of the input is used, holding other
inputs fixed.
E. the marginal product of a factor always diminishes as more of the input is used, holding other
inputs fixed.
13. If Harry Doubleday's price elasticity of demand is 2 and its profit maximizing price is $6, then
A. average cost is $3.00.
B. average cost is $0.33.
C. marginal cost is $3.00.
D. marginal cost is $0.33.
E. average cost is $5.67.
14. Harold is indifferent between $2,500 for sure and a bet with a 60 percent chance of $2,400 and a 40
percent chance of $2,600. Harold is
A. risk averse.
B. risk loving.
C. risk neutral.
D. a profit maximizer.
E. irrational.
國立彰化師範大學九十一學年度碩士班招生考試試題
系所：商業教育學系碩士班
☆☆請在答案紙上作答☆☆
組別：乙組
科目：個體經濟學
共 7 頁，第 4 頁
15. The principal-agent model of economics concentrates on
A. the threat from foreign competition.
B. the need to manage inventory more effectively.
C. double-entry bookkeeping.
D. the potential costs of separation of ownership and control.
E. the time value of money.
16. Radio City promises if you can find a lower advertised price for anything you bought at Radio City,
anywhere in town within 30 days, it will return the difference plus 20 percent. A sophisticated game
theoretic analysis suggests Radio City may be
A. losing money in the long run.
B. colluding with other stores.
C. using a commitment to threaten competitors.
D. preempting competitors.
E. using price leadership.
17. The demand for answering machines is Q = 1,000 - 150P + 25I. Assume that per capital disposable
income I is $200. At a price P of $10, the price elasticity of demand is
A. 3.0.
B. 3.33.
C. 1.33.
D. 0.33.
E. 1.0.
18. The demand for a product is more elastic the
A. more broadly defined the product.
B. longer the time period covered.
C. higher the average income of consumers.
D. larger the share of a consumer's income the item represents.
E. larger the number of firms in the market.
19. Economies of scope exist when it is cheaper to produce
A. with a large fixed plant and equipment.
B. at increasing rates of output.
C. given quantities of two different products together than to produce the same quantities separately.
D. given quantities of two different products separately than to produce the same quantities together.
E. using more than one technique.
國立彰化師範大學九十一學年度碩士班招生考試試題
系所：商業教育學系碩士班
☆☆請在答案紙上作答☆☆
組別：乙組
科目：個體經濟學
共 7 頁，第 5 頁
20. If a resource is not fully utilized,
A. its slack variable value will be zero.
B. its slack variable value will be negative.
C. its slack variable value will be positive.
D. its constraint will be binding.
E. it will not be worth anything.
21. The marginal cost of manufacturing a famous family sedan is subject to a learning curve described
by log C = 5 - log Q, where C is the current period's marginal cost in thousands of dollars and Q is
the accumulated past production in millions of cars. How much past output must be accumulated
before marginal cost falls 10 percent from its level when 10 million cars had been produced?
A. 11.1 million
B. 14.1 million
C. 15.1 million
D. 19.1 million
E. 20.1 million
22. Donald Trumpet is indifferent between rates of return satisfying R = .10 + .01σ (σ is the standard
deviation). Donald is risk
A. averse and profit maximizing.
B. averse and not profit maximizing.
C. loving and profit maximizing.
D. loving and not profit maximizing.
E. neutral.
23. A budget constraint
A. must be convex to the origin if consumers prefer more to less.
B. will be upward sloping if consumers consider one good a "bad".
C. must be downward sloping if both goods have positive prices.
D. will be concave to the origin if the consumer's budget is fixed.
E. will always have slope equal to -1.
24. An increase in fleet sales of new cars to rental car companies that then resell the cars after only 5,000
miles will
A. likely cause the equilibrium price of new cars to fall.
B. likely cause the equilibrium price of new cars to rise.
C. increase the demand for cars in new-car show rooms.
D. increase the demand for Japanese imports.
E. none of the above.
國立彰化師範大學九十一學年度碩士班招生考試試題
系所：商業教育學系碩士班
☆☆請在答案紙上作答☆☆
組別：乙組
科目：個體經濟學
共 7 頁，第 6 頁
25. It costs $1 to go to the market to buy produce for your restaurant. If it costs $.20 to store a head of
lettuce, how many times a week should you go to the market if you sell 40 heads a week?
A. Twice
B. 4 times
C. Once
D. 3 times
E. 20 times
26. The plot of a variable that grows by a constant percentage amount each period against time is
A. a concave curve.
B. a linear curve.
C. an exponential curve.
D. a logarithmic curve.
E. a and b.
27. The OPEC oil cartel lost its market power and world oil prices fell in the 1980s because
A. OPEC expanded its membership to include all international producers of oil.
B. world consumers boycotted OPEC oil.
C. a limit pricing strategy was pursued by some members of the cartel.
D. members began to cheat on cartel agreements.
E. the United States refused to buy oil from OPEC.
28. The slope coefficient estimate b from a regression of profits on sales of a number of firms in the coal
industry is 0.075. How should you interpret this coefficient?
A. Average profit in the coal industry is 7.5 percent.
B. If a firm in the coal industry were to increase its sales by $1, its profits would rise on average by
$0.075.
C. If a firm has 1 more dollar in sales than another firm in the coal industry, it will have 7.5 more
cents in profit on average.
D. Average profit in the coal industry is .75 percent.
E. If a firm in the coal industry were to increase its sales by $1, its profits would rise on average by
$0.0075.
29. A consumer's budget constraint changes slope whenever
A. the consumer buys a different combination of goods.
B. relative prices change.
C. the consumer's income increases.
D. an indifference curve is tangent to it.
E. absolute prices change.
國立彰化師範大學九十一學年度碩士班招生考試試題
系所：商業教育學系碩士班
☆☆請在答案紙上作答☆☆
組別：乙組
科目：個體經濟學
共 7 頁，第 7 頁
30. You only have 12 ovens in which to bake over 200 specialty pastries. Subject to the oven constraint,
you determine the profit maximizing quantities of each pastry to produce and find that the
Lagrangian multiplier is equal to 0. From this you conclude that you
A. should be producing fewer types of pastry.
B. should be producing more types of pastry.
C. should purchase additional ovens.
D. are effectively unconstrained with 12 ovens.
E. should purchase 2 more ovens.
31. In capital asset pricing the investor is paid a premium for buying a particular stock on the basis of
the
A. unsystematic risk of a stock.
B. nondiversifiable risk of a stock.
C. total risk of a stock.
D. risk-free rate of return.
E. long-term risk of a stock.
32. Housing starts follow the regular pattern: Qhousing starts = 100 - 20A + 40B + 20C, where Qhousing starts
is the number of starts, and A, B, and C are dummy variables for the first, second, and third
quarters of the year respectively. By what percentage amount are housing starts in the first quarter
less than the average of the other three quarters?
A. 20 percent
B. 30 percent
C. 33.3 percent
D. 40 percent
E. 50 percent
33. If output is produced according to Q = (KL)3/4, then this production process exhibits
A. increasing returns to scale.
B. decreasing returns to scale.
C. first increasing and then decreasing returns to scale.
D. constant returns to scale.
E. first decreasing and then increasing returns to scale.