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Use the following to answer question 5: q5.jpg  At a price ceiling of $8, there is a shortage of ______ and a deadweight loss of ______.

Monroe consumes crab cakes and tuna. Monroe’s utility increases with the consumption of crab cakes, but his utility neither increases nor decreases with the consumption of tuna. Assuming tuna is placed on the x-axis and crab cake is placed on the y-axis, what do Monroe’s indifference curves look like?

c) If the market is instead perfectly competitive (with the same demand and same cost function), what will be the equilibrium price and output level? How much consumer surplus (CS) and producer surplus (PS) will the perfectly competitive market generate?

Use the following to answer question 33: q33.jpg  The levels of consumer surplus under monopoly and perfect competition are ______ and ______, respectively.

Use the following to answer question 20: Quantity of Output, Q Total Revenue Total Cost 0 0  30 1 100  50 2 200 100 3 300 180 4 400 280 5 500 520 The level of output where marginal revenue equals marginal cost is:

b) How much should a representative firm supply to maximize its profit? If all firms in the market are identical, how many such firms are in this market?

b) A strawberry farmer has the option of a) harvesting the strawberries and selling them in the market, and b) leave them on the ground and let them rot. If he is a profit maximizer, how should he choose between the two options? Explain.

There are only three consumers in the market, and their demand equations are as follows: (1) Q = 5 – 0.5P, (2) Q = 10 – P, and (3) Q = 2 – 0.2P. What is the equation for the market demand curve?

Answer questions 47 and 48 based on the following information: A March 25, 2010, article at SunSentinel.com reported, “Strawberry farmers in Florida are facing such a sharp collapse in prices for their berries that many are deciding to simply leave huge tracts of the berries to rot in the fields…Wholesale prices that were $17 to $19 for a flat of eight containers have now fallen to $5 to $6 a flat.” a) Under such a market condition, can a strawberry farmer simply charge a higher price for his strawberries? Why or why not?

Use the following to answer question 8: q8.jpg  Good X and good Y are: