1. [9 points) The following are three statements about an individual rm in a perfectly competitive market. For each statement, indicate whether it is True or False and explain why. {a} The rm's output level is very small relative to market output; therefore the rm cannot inuence the price, but rather takes market price as given. {b} The rm faces a downde sloping marginal revenue curve. (c) The rm will maximize prot in the short run by setting qnsirntityr such that the difference between MR and MC is maximized. 2. [1G points) A monopolist for a specialized product faces a market demand curve of P = 5000 462 and MC 2 2!]. (a) What is the protrmaadmizing price and quantity for the monopolist? [b] What is the ownprice elasticity at this price and quantity? (c) Illustrate your answer om part {a} on a graph. Be sure to clearly label your axes, curves, and relemnt points. 3. [12 points) The organic apple market is perfectly competitive, with apples currently selling at $22 per case. A study commissioned by the organic apple association shows that the shortrun total cost of production for a typical producer is TC = 8,000 + llz'f, and MC = 0.049 where q is the number of cases sold per year. {a} [4 points) Calculate the shortrun prot maximizing quantity [number of cases] for the typical producer. [b] [3 points} In the shortrun, should the typical producer shut down? Show your work and explain, clearly laying out the logic in support of your answer. No graph is required but you may draw one if you nd that helpful in your explanation