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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]

Referring to the data on car and truck production, compute the opportunity cost of producing trucks and cars below. Data table Adam Billy Trucks Cars Trucks Cars 0 12 0 4 1 9 2 3 2 6 4 2 3 3 6 1 4 0 8 0   Opportunity Costs Adam  Billy OCtruck [atruck] OCtruck [btruck] OCcars [acars] OCcars [bcars] Which person has the comparative advantage in producing trucks? [trucks]  Which person has the comparative advantage in producing cars? [cars] 

The figure represents a restaurant operating in monopolistic competition. Alt Text: meals at a restaurant The firm’s efficient scale occurs at [eff] meals per day. Therefore the firm [yesno] have excess capacity of [amount] meals per day.   

Based on your answer to the previous question, are museum trips and library visits complements or substitutes? Elasticity Price Elasticity Cross Price Elasticity Income Elasticity e = 0, perfectly inelastic e < 1, inelastic e = 1, unit elastic e > 1, elastic e = ⚯, perfectly elastic e > 0, substitutes e < 0, complement e = 0, not related e > 0, normal good e < 0, inferior good e = 0, not related

The figure shows the market for a winter jackets. Alt Text: winter jackets  What is the initial equilibrium price [price] and quantity [quantity] of jackets? Suppose the government imposes a price control at $100 per jacket. How many jackets are purchased after the price control is imposed? [pricecontrol] Will there be a shortage or surplus after the price control? [impact]

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. Hotels cut their prices, offering deep discounts on hotel rooms.  What will be the impact on the market for Las Vegas hotel rooms? Select all that apply.