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Enter your answers for the middle column of the chart above.

Color is often added to food to indicate to the consumer what flavor it is like pink color to indicate strawberry ice cream, and that is measured to ensure the correct amount has been added.  Other than this, name 2 other reasons measuring color would be important.     

What is the difference between pasteurization (the step not the unit process) and sterilization?  Which unit operation are these, and name a product that is pasteurized and one that is sterilized.

Enter your answers for the middle column of the table above.

And in the cheese example above, what unit operation is occurring?

Enter your questions for the left column of the chart above.

In the picture above, what if frying oil was being pumped?  What kind of pump?

Which is not a form of heat transfer?

You will have 2 hours to complete the exam. There are 4 major questions. Each question is worth 120 points. Make sure to answer all parts of all questions fully on the exam.  Write your answers in sentences. Make sure to explain where your results come from. A final answer without a clear explanation of how you obtained it is a failing answer. In cases where your final answer may be incorrect, many of the logical steps you followed might well be correct. We will not be able to award you partial credit if you do not show the process through which you obtained your answer. Question One. Consider the market for palm tree trimming in a major metropolitan area in the Southwestern United States.  There are two major firms, DesertTrees and ArborExperts. The demand for tree trimming is characterized by the following equation: P = 10000 – D – A, where D and A represent the number of tree trimmings produced in a season by DesertTrees and ArborExperts, respectively.  DesertTrees has a marginal cost equal to average cost of $400 at all levels of output.  ArborExperts has a marginal cost equal to average cost of $400 at all levels of output.  (56 points) This is a Cournot situation where both choose quantity at the same time.  In the Nash equilibrium identify:    the quantities chosen by ArborExperts and DesertTrees, the market price that will result, and the profits received by ArborExperts and DesertTrees. Make sure to explain clearly how you are solving the problem and show your work. (56 points). ArborExperts and DesertTrees are in a Cournot setting and a third producer, Remover, has joined the industry.  Remover also has a marginal cost equal to average cost of $400 at all levels of output.  All three are choosing quantity simultaneously and the price is then determined after the quantities are set.  Describe the new Nash equilibrium and explain why it develops that way.  Analyze the situation and show:  the quantities chosen by ArborExperts, DesertTrees, and Remover, the market price that will result, and the profits received by ArborExperts, DesertTrees, and Remover. Here is a hint to make your life easier.  All three firms have identical costs and they face the same overall market demand.  Would you expect them to each end up with the same quantity?  Don’t use the hint until you have set up the first order conditions properly. (8 points) When moving from the situation with two firms to the situation with three firms in this case, in what direction does consumer surplus move?  Explain.  You don’t need a numerical answer. 

You operate a piano tuning business. This is a setting where you have some degree of market power due to location.  Table 1 gives your cost information and the demand curve that you face for house calls in April 2021.  The fixed cost reflects your monthly lease on vehicle you need to transport your tools.  All economic costs are included in the cost figures.   (32 points) Consider the demand and cost situation in April 2021.   You are in a situation where you a charging a single price to all buyers and you have not yet paid the fixed costs.  What is the optimal price and quantity for you to choose if you want to maximize profits?  Explain why you chose that quantity and price?      (32 points) On May 1st, the day after you signed the next month’s lease, some of your rivals begin running discounts that you expect to end at the end of the month.  The discount specials have cut your demand to the situation in Table 2.  What price and quantity would you choose if you are trying to maximize profits?  Discuss why you chose them.   (28 points) By the end of May, it has become clear that two other piano tuners have moved into your territory and you see that the demand for May 2021 in Table 2 will be the expected permanent demand.  You have not yet paid your rental costs for May 2021.  Now what price and quantity do you choose if you want to maximize profits? Explain.   (28 points) Now consider a situation where you are a first-degree price discriminator facing the demand in May 2021 in Table 2.  What would be your pricing strategy and what quantity would you choose if you wanted to maximize profits?