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Spring 2020


INSTRUCTIONS:  Complete the certification below. Answer the designated number of questions in each part of the exam.  You can use your textbooks and other sources.  You cannot consult with others about your answers.  If you have questions about the exam, you can ask me via email, during office hours, or via Zoom. You should type your answers directly into the exam document. Return your completed exams and any supporting materials (graphs, tables, etc.) by 11:59pm March 22 2020.


Please photograph or hand-drawn graphs if need

SOURCES:  If you rely on sources other than the textbooks for the course, you must give complete bibliographic citations.


NAME: ___________________________________


PART A: Answer any 5 of the questions A.1 – A.7. Do not answer additional questions. This part is worth 15% of the exam.


Briefly define and give a specific example of:


A.1. Perfect competition

A.2. Monopoly

A.3. Monopolistic competition

A.4. NAICS Code

A.5. Location Quotients

A.6. An inverse matrix

A.7. Price discrimination


PART B: Answer each of the questions B.1 – B.3. This part is worth 30% of the exam.


B.1. Why is “1” a critical value in terms of Location Quotients? If the Location Quotient of some industry is greater than one, what does this mean for the area whose Location Quotient this is?


B.2. Why do all suppliers want to price discriminate?


B.3. Why don’t all suppliers price discriminate?


PART C: Answer only 1 of the questions C.1 – C.2. Do not answer additional questions. This part is worth 55% of the exam.


C.1. Outline the structure of an input-output model (including assumptions about supply and demand). What is an inverse matrix? Why is inverting a matrix significant in terms of input-output analysis?


C.2. Describe a Linear Programming (LP) Problem. Specifically, describe (you can use an example):

  • Primal Linear Programming Problem
  • Dual Linear Programming Problem
  • Interpretation of the Primal Linear Programming Problem
  • Interpretation of the Dual Linear Programming Problem


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