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The following questions are about a hamburger restaurant. 

The following questions are about Tom operating a pretzel stand. 

The figure shows the market for three moving companies in a small town. Complete the table. Alt Text: moving companies Moving companies   Competitive Outcome Non-competitive (Monopoly) outcome Price Pcomp:  [Pcomp] PM: [PM] Quantity Q comp: [Qcomp] QM: [QM] Consumer Surplus [cscomp]  [csmonop] DWL [dwlcomp] [dwlmonop]

Items for which buyers have strong preferences typically have an [elastic]  demand. We should expect total revenue to [tr] as price increases.

Alt Text: payoff matrix Suppose Apple and Microsoft collude and form an agreement. What will the agreement dictate each firm chooses as their strategy? [agreement] What is likely to happen? [outcome]

The following questions are about perfectly competitive firms. 

The table below shows business data for Michelle’s Jewelry, a monopolistically competitive firm. Jewelry Price Quantity TR MR TC ATC MC 60 0 0 500 50 6 300 50 560 93.33 10 40 12 480 30 620 51.67 10 30 18 540 10 680 37.78 10 20 24 480 – 10 740 30.83 10 10 30 300 – 30 800 26.67 10 0 36 0 – 50 860 23.89 10 What are the profit maximizing output, price, and economic profits?  Output: [output] Price: [price] Economic Profit: [profit] Will there be entry or exit? [enit] The markup on the jewelry is [markup].

Suppose the government introduces a tax on gasoline.  Alt Text: gas tax After the tax, what price do buyers pay? [buyers] per gallon. What price do sellers receive? [sellers] per gallon. What quantity is produced after the tax (Qtax)? [qtax]

Provide an explanation for why you chose rival or non-rival; and excludable or non-excludable for beer/alcohol.  Your explanation should incorporate the good or service and not simply restate a definition.

The market for Las Vegas hotel rooms Show on a supply and demand graph the impact of the following events on the equilibrium price and quantity. The heat wave in July raises temperatures to 115 degrees leading consumers to cancel their reservations. The demand for hotel rooms [demand]. What factor caused the shift? [demandfactor] Shift in supply [supply].  Effect on equilibrium price? [price] Effect on equilibrium quantity? [quantity]