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Fill up the empty boxes labeled G, H, I, J, K, and L.  Only these boxes, nothing else.  Write your answers in the space provided below; there is no need to create your own table to write your answers. SUMMARY OF CHARACTERISTICS OF 4 MARKET STRUCTURES   Perfect Competition Monopoly Monopolistic Competition Oligopoly Sellers and Buyers Many sellers and buyers       Products Homogeneous products (aluminum)       Entry and Exit Entry and exit are easy G H I Relevant Info Buyers and sellers have all the relevant info they need N/A N/A N/A Long Run Economic Profit No Economic Profit in the long run J K L

According to the textbook, when applied to Speed Limit Laws, why does Game Theory – Prisoner’s Dilemma have a different outcome as opposed to cutting down on nuclear weapons?  Both parties (those who abide by the speed laws and those who do not abide by the speed laws) agree to obey the speed laws.  Explain why.

According to the textbook, why are Cartels flawed such that they do not last long, or are ineffective in the long run?

According to Game Theory – Prisoner’s Dilemma, the US and the Soviet Union both cheated during the Cold War, and instead of sticking to the agreement of cutting down on nuclear weapons, they both increased their production of nuclear weapons (because whichever country that breaks the agreement will have a superior advantage over the other). Let’s apply Game Theory – Prisoner’s Dilemma to gun control.  There are 2 types of people living in the US: criminals and law abiding citizens.  If guns are banned tomorrow, will both parties obey the gun ban?  Explain your answer. 

Refer to the 2 previous questions.  If you were the owner of the firm, would you continue to produce at an output of 29, or would you stop production altogether?  Whatever your answer is, explain why.

What is the Profit Maximization Rule in Perfect Competition?

Refer to the previous question.  Look at the column that says Qty of Factor X.  At Qty = 2, what is the interpretation of its MFC?

What did the Unions do such that the car manufacturers abandoned the city of Detroit?

Based on the graph that is shown, give an example of inelasticity. Clue: make it about wages and quantity of labor.

In Perfect Competition:  P = MR and P = MC.  A.  In a Monopoly, P is greater than, less than, or equal to MR?  B.  In a Monopoly, P is greater than, less than, or equal to MC?  Make sure you answer both questions.