IT advancements over the past 25 years has dramatically changed the way in which the world communicates and does business. Please list the top three to five technological developments that you believe

Problem #1

The following graph shows the market demand and cost of production in the long run in an industry.

Furthermore, assume that the demand and LATC equations are given as follows:

D: P=1000-2Q

LATC= 500-0.3Q

LMC= 500-0.6Q

1. If firms behaves as monopolist then price will be ______ on the graph, which is $______, the firm is earning _________In the amount of ____________ because price exceeds the ____________, thus, TR must also exceed the _____________.

2. If unregulated, unlike a perfectly competitive firm, this firm may continue to earn _____________ in the long-run.

3. If the firm behaves similar to a competitive firm, the price is _______on the graph and is $____________, the long run economic profit would be _________________ . This price is less than/more than the LATC, and the firm would _____________________ in the long-run.

4. If regulators wanted to ensure zero economic profit for the firm, the price would be set at _______, which is $___________.

5. This is an example of a market structure that we call______________________. In the business world an example of this situation would be _______________________________________________________________.

Problem #2

The following monthly demand and supply equations for DVD players in a market are given.

D: P = 800 - 2Q S: P = 100 + 3Q.

a. The equilibrium price and quantity under perfect competition will be _______ and ________.

b. The total gain in efficiency in the DVD market under perfect competition is $________________.

c. If the production and disposal process impose a negative externality such that the social MC is 1.5 times of the private MC given above, the socially optimum price and quantity produced are___________, and ___________, respectively.

c. Assume that a monopolist takes over the market. The equilibrium price and quantity will be _______ and ________.

d. In the following graph, label prices and quantities computed in both cases, and identify the loss in economic efficiency (dead weight loss) due to the monopoly market structure.

Problem #3

In the “real world” the market structure that dominates retailing is _______________________, Firms in ____________________ market structure compete based on ________________________________________________________. They may have ____________________________________ in the short- run, but in the long –run economic profits move toward ______________________ as more firms ______________________________ and demand for a single firm’s product or services ______________.

Problem #4

The behavior of oligopolistic firms is interdependent. One way of demonstrating how oligopolistic firms may behave is chaos theory /game theory, which shows that most cartel agreements maybe __________________________ as firms have incentive to _____________________________.

Problem #5

The intent of anti-trust legislation is to promote _______________________________ and prevent formation of ___________________________________. Some examples of anti-trust laws are _________________________________________________.