1) Can you think of examples of the 4 market structures? Come up with one example for each. Interesting/surprising selections are welcome!

2) Imagine a scenario in which the fashion industry is suffering from a lack of supply (due to higher production costs) and a dwindling demand (due to the existence of sweatshops and environmentally unfriendly business practices).

A hypothetical situation such as this is likely to cause high unemployment in the fashion industry. What could the government do to correct this market failure?Give an example of a solution.

3) Diagram the revenue and profit situation (which would also include the cost curves) for a producer of a highlyelastic(but not perfectly elastic) good of your choice (a restaurant, boutique clothing store, etc.). Under what circumstances would it make sense for them to raise their price?

While profit maximization is the main goal for most firms (and one which you should be able to represent on a diagram), you may wish to consider alternative goals depending upon the business you have chosen.