he ‘sogidl dal tol ‘Ziab Open University Faculty of Business Studies ECO101 Principles of Microeconomics FINAL EXAM-B Fall Semester, 2019 - 2020 9 Jan 2020 Number of Pages Time Allowed: this cover page 2 hours i Instruction: * Students are expected to refer to the course materials and use examples from the course and from their own experience in their answers where needed. * Simple calculators are allowed. * This final exam consists of four questions. Students are required to answer all of them. + The total weighting of this final exam is 50% of the total course grade. + You are advised to adhere to the exams rules and regulations as specified by AOU rules and regulations. Any form of misconduct during the exam will be subject to AOU rules and regulations. £CO101-Final-VB Pave 1of 3 Fall 2010.2990,Question One (20 points) ‘Complete the table below based on the relationships among the various cost functions. {120 iI $36 Rp B72 B i252 Ke 96, 6 p36 Question Two (30 points) Explain the impact of cach of the following factors on the demand or supply curves of tea, 8) Social trend against the consumption of tea. b) The price of sugar decreased. ©) New technology appears in planting and growing tea ) The price of tea increased Question Three (30 points) Based on the information provided in the table below, which of the following three firms experiences economies of scale, constant retums to scale, and diseconomies of scale? Justify your answer, 100 a $90 $100 200 3 $126 $180 300 a $148 $300 400 5 - $165 $450 500 6 $170 $660 600 Ernint cine Pave 2 of 3 Fall 2019-2020Question Four (20 points) a) What should a firm do if it realizes that its marginal revenue is more than its marginal cost? (10 points) b) Explain the difference between economic profits and accounting profits. (10 points) Best wishes £CO101-Final-VB Page 3 of 3 Fall 2019-2020