1. Explain Structure-Conduct-Performance (SCP) paradigm for a monopoly. Give an example of real-life monopoly and explain its SCP. 2. Which costs are pertinent to economic decision making? Which costs are not relevant? Explain in detail. 3. Numerically and algebraically show that MC curve intersects the minimum of AVG curve. What is the relationship between AVC and AC? 4. Write the conditions leading to perfectly competitive equilibrium. Explain what is meant by "price- taker" in your own words. 5. A) Algebraically show that at the competitive equilibrium, a firm's price elasticity of demand is equal to e=E*n-s*(n-1), where n is the number of rms, E is the price elasticity of market demand, 5 is the other firms' supply elasticity. Also, explain what happens when n approaches to 1 and when n approaches to innity. B) Let market demand be Q=100np, where p is the market price, and supply curve for a competitive firm be q=p. Calculate price elasticity of demand for a firm at the competitive equilibrium when there are i] 10 rms; ii} 20 rms; iii] 50 rms. Explain the relationship between the number of firms and its price elasticity of demand. 6. In the real world, do you think that all firms are profit-maximizers? Discuss and try to find evidence for your claims