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04

ON YOUR QUESTION BOOKLET:

ON YOUR SCANTRON:

5 points

DURING THE EXAM:

MUST

DO NOT OPEN THIS BOOKLET OR TURN IT OVER [until told to do so]

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NONE

Figure PCM.

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Figure EXT.

NONE

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Figure TXA.

decrease

ALL

Figure PPD.

perfect price discrimination

[Hint: Do NOT forget

NONE

ALL

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NONE

Figure QMC.

in th short run

MORE

not

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(Claudia’s profits, Daniel’s profits).

strategy

vice versa

strategy

vice versa

Z

NONE

ALL

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not

Table ACC.

Train Plane

ALL

X Y

AC = MC = 0

Q = 9 – P

X

X Y NONE

X Y X Y

Republican

Demo- crat

Note: “Positive advertisements” say good thingsabout the candidate; “negative advertisements” saybad things about the candidate’s opponent.