Please check that you have 9pages in your copy of the exam. There are threequestions in all.•Be sure to answer what is asked in each question. Your answers may be typed or hand-written. Show your work...

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Please check that you have 9pages in your copy of the exam. There are threequestions in all.•Be sure to answer what is asked in each question. Your answers may be typed or hand-written.

Show your work and explain your reasoning!To get full credit, it is not sufficient to answer correctly but without explaining your solution. Similarly, you can get partial credit if your reasoning is correct, but you make a mistake in your calculations. If you find yourself running out of time, try to write down the key steps or logic of the answer.

You have 90 minutesto complete the exam


Sample Exam I Questions _EMBA 2021_.pdf Sample Exam I Solutions _EMBA 2021_.pdf
Answered 3 days AfterFeb 23, 2021

Answer To: Please check that you have 9pages in your copy of the exam. There are threequestions in all.•Be sure...

Komalavalli answered on Feb 26 2021
146 Votes
Firms and Markets (Spring 2021)
This exam is designed to test your understanding of the concepts covered to this point in the course. Take some time to read the questions carefully.
· Please check that you have seven pages in your copy of the exam. There are three questions in all.
· You
can type your answers on the exam itself or handwrite them on sheets of A4 paper.
· This is an open-book exam, but you may not consult with any of your classmates or with anyone else during the exam.
· Show your work and explain your reasoning! To get full credit, it is not sufficient to answer correctly but without explaining your solution. Similarly, you can get partial credit if your reasoning is correct, but you make a mistake in your calculations. If you find yourself running out of time, try to write down the key steps or logic of the answer.
· You have 90 minutes to complete the exam, plus a 15-minute buffer to download and submit it. The exam is worth 120 points. Please submit your exam by 10:45 am.
· Finally, please read and then sign the following statement:
I understand that the honor code applies:
I will not lie, cheat, or steal to gain an academic advantage, or tolerate those who do.
_______________________________________
Name
QUESTION 1: [40 POINTS]
ZipRecruiter is a monopolist which charges employers a monthly subscription fee to post jobs (but is free for job seekers). In September 2020, ZipRecruiter hired two business school professors to conduct a series of experiments that randomly varied the price of a monthly subscription to new clients only. The experiment was designed so that when each potential employer hit the paywall, they were asked to sign up at a randomly assigned monthly price. The resulting data were:
    Monthly Price
    $19
    $59
    $99
    $159
    $199
    $249
    $299
    $399
    Clients (thousands)
    34.5
    31.5
    23.0
    20.0
    18.0
    15.5
    14.5
    12.0

(a) [10 points] What is the own-price elasticity of demand evaluated at $159 per month?
Own price elasticity (E)= %ΔQ/%ΔP
        E     =(20-23)/20*(159/ (159-99))
        
        E     =-3/20*(159/ 60)
E     =-0.15*2.65
        E     =-0.3975
(b) [10 points] What is the own-price elasticity of demand evaluated at $199 per month?
Own price elasticity (E)= %ΔQ/%ΔP
            E     =(18-20)/18*(199/ (199-159))
        
            E     =-2/18*(199/ 40)
E     =-0.11*4.975
            E     =-0.54725
(c) [10 points] What is the marginal revenue for ZipRecruiter at a price of $199 per month? Assuming a positive marginal cost, should ZipRecruiter charge a price above $199 per month? Explain.
Total revenue for Zip Recruiter at a price of $199 = 18*199 =$3582
Total revenue for Zip Recruiter at a price of $159= 20*159 =$3180
Change in total revenue for Zip Recruiter ΔTR = 3582-3180 =$402
Change in clients due to a change in price from $159 to $199 ΔQ= 18-20 = -2
Marginal Revenue = ΔTR/ ΔQ = 402/-2 = $-201
Here we can see that the marginal revenue is less than the...
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