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Refer to the accompanying graph to answer the next question. The supply and demand curves apply to both a monopoly market and a competitive market. The marginal revenue curve applies only to a monopoly.   What would be the deadweight loss in a monopoly market?  

  When output is 100 units, a firm’s total fixed cost is $500. What will this firm’s total fixed cost be if output doubles to 200 units?

Refer to the accompanying graph to answer the next question.   This profit-maximizing firm’s total profit is equal to  

  The price at which a perfectly competitive firm sells its product

  Jason owns a business in Jacksonville, Florida, that sells home security systems. The local market for security systems is very competitive. At Jason’s current production level, his marginal cost is $2,550 and his marginal revenue is $2,400. To maximize profits, Jason should

  Where is a perfectly competitive firm’s break-even price?

Suppose you have recently opened a consulting business.  Each of the parts to this question provides data for a different firm that has sought out your services. (Each part is independent of the other parts.  Each of these firms are operating in perfectly competitive industries.  The objective of these firms (as usual) is to maximize profits (or minimize losses).  Your job, as a consultant, is to suggest an appropriate course for the firm to follow.  The options available are: Firm is now at correct position (change nothing),  Firm should increase price, Firm should decrease price, Firm should increase quantity of output produced and sold, Firm should decrease quantity of output produced and sold, Firm should shut down operations,  Firm gave you inconsistent / incorrect info. You must show your work to receive credit.

  Belinda is the owner of a department store. Last year, her total revenue was $525,000 and her total labor costs were $200,000. Her overhead expenses, including insurance and legal fees, were $175,000. The rent on the building was $40,000. Belinda could earn $100,000 per year working at a nearby department store. If her total revenue increases to $600,000 this year and all of her other expenses are held constant, we know that her economic profit is now

  The typical result of monopoly is __________ prices and __________ output than we find in a competitive market.

  Economists assume that the cost of __________ is fixed in the short run.