PRINCESS SUMAYA UNIVERSITY FOR TECHNOLOGY
The King Talal Faculty for Business and Technology
EXAMINATIONS
Department: MIS
Student Name:…………………...…… (in Arabic)
Student No:
EXAMINATION INFORMATION
Final Examination Date: 4/06/2016
Academic Year: 2015/2016 Semester: Second
Course Name: Microeconomics Course No: 32131
Exam Location: 201 - 205 Duration: 120 Minutes
Section No Schedule Instructor
Dr. Abdul Ghafoor Al Saidi
Dr. jaber Al-Bduor
For Examiners Use Only
Q# Max.Mark Mark Earned
1 10
2 5
3 4
4 6
5 8
6 7
Total 40
EXAMINATION INSTRUCTIONS
1. Write your full name and number before you start answering questions.
2. Tick your correct section number and instructor.
3. This exam paper is worth 40% of the total mark for the course.
4. This exam paper contains 6 questions.
5. All questions are self-explanatory. Do not ask for clarification.
6. The student is required to answer all questions.
7. MOBILE PHONES are not allowed in the examination venue.
8. In no circumstances must this exam paper be taken out of the examination room.
9. HANDWRITTING, Students are warned that marks may be lost through illegible
handwriting. The examiner can give credit only for what he/she can read.
Please write clearly in ink
1
QUESTION ONE (10) MARKS
2
Following are data given on a producer (firm) in a market;
PQ P FC VC TC TR AV ATC MC MR PROFI
C T
0 8 8
1 8 9
2 8 10
3 8 11
4 8 13
5 8 19
6 8 27
7 8 37
1. Calculate profit for each quantity. How much should the firm produce to
maximize profit?
2. Calculate marginal revenue and marginal cost for each quantity. Graph
them. At what quantity do these curves cross? How does this relate to your
answer to part (1)?
3. Calculate average variable cost and average total cost for each quantity.
Graph them.
4. Can you tell whether this firm is in a competitive industry or monopoly
industry? Can you tell whether the industry in a short – run or long- run
equilibrium?
3
QUESTION SECOND (5) MARKS
Define total cost, variable cost, and fixed cost. Give their equations and graph them?
4
QUESTION THREE (4) MARKS
What are the characteristics of a monopolistic competitive market? Why it takes
this name and gives an example for products in such a market?
5
QUESTION FOUR (6) MARK
1. What are the defect in the old utility theory, and why economists develop this
theory to the new theory (indifference curves theory), elaborate on this?
2. Why does supply curve slope upwards?
6
QUESTION FIVE (8) MARK
Define and draw:
Surplus
Indifference curve map
Inelastic supply
Law of diminishing marginal returns
7
QUESTION SIX (7) MARK
According to the demand:
1. Define the demand law?
2. Following the model for demand schedule, complete this Demand schedule, and
draw the Demand curve?
price Quantity
Demand
$5
$ 10
$ 15
$ 20
3. List the determinants of the demand?
