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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.

Give an example of the Marginal Productivity Theory (tell me a story). 

Refer to the previous question.  Look at the column that says Qty of Factor X.  At 4, what is the interpretation of its MFC?

Solve for MFC at A, B, and C. Use this formula:  MFC = change in TC / change in Quantity of Factor X Qty of Factor X Price of Factor X Total Cost Marginal Factor Cost (in $) 0 $4 $0 N/A 2 $4 $8 A 4 $4 $16 B 6 $4 $24 C

Give an example of the Income Effect (tell me a story).