1. A monopoly produces widgets at a marginal cost of $55 per unit and has fixed costs of $500. It faces an inverse demand function given by P = 125 - 5Q. What is the marginal revenue function of the firm?

2. A monopoly produces widgets at a marginal cost of $55 per unit and has fixed costs of $500. It faces an inverse demand function given by P = 125 - 5Q. The output that equates the monopolist's marginal revenue and marginal cost is

3. A monopoly produces widgets at a marginal cost of $55 per unit and has fixed costs of $500. It faces an inverse demand function given by P = 125 - 5Q. Profit/loss at the output that equates the monopolist's marginal revenue and marginal cost is

4. A monopoly produces widgets at a marginal cost of $55 per unit and has fixed costs of $500. It faces an inverse demand function given by P = 125 - 5Q. Suppose fixed costs are cut by $500; resulting in zero fixed costs. What happens in the market?

5. Students have an elasticity of demand for going to see a first-screen movie in the theater of -3. Assume the general public has an elasticity of -2, and movie theaters charge students $7.50 per ticket. The movie theater should charge the general public

6. If a monopolist claims her profit-maximizing markup factor is 4, what is the corresponding price elasticity of demand?

7. If EF is the firm elasticity of demand and EM is the market elasticity of demand, the profit-maximizing markup factor for a firm operating in a monopolistically competitive industry with N identical firms is

8. You are the manager of a souvenir store in New York City that sells, among other things, post cards. You buy the post cards from a supplier at $0.10 per card. If you believe the elasticity of demand for post cards for customers at your store is -2, then your profit-maximizing price is