1. Market Structure (65 points)A. Graph and discuss a comparison of the short-run and long-run profits, price, quantity, MR and MC of a Monopoly and a PC firm. Which type of firm is more efficient and why? (30 points)B. [Graph the short-run and long-run equilibrium of a Monopolistically Competitive firm. Are they efficient? Why or why not? (10 points)c. What is the market structure? Give an example and the characteristics of each type of structure. (10 points)2. OIf the U.S. wants to maximize tax revenues, should we impose an excise tax on McDonalds or gasoline? Why?Make sure to include an elasticity graph for both firms and the equation for elasticity and your assumptions regarding the elasticity of demand for both products. (10 points)3. D International Trade (15)A. What is the difference between an absolute and comparative advantage? Give an example from your own life. (5 points)B. What are two ways nations prohibit trade? (Make sure to include the appropriate graphs for both the U.S. and the foreign country) Who benefits and who pays for this action? (10 points)4. What are the 4 types of market failure? Explain each, give an example of each, and a solution for each.

D. Assuming that there are only 2 cell phone companies, Apple and Samsung, what is the ((Nash) Equilibrium) or price that each company in the following matrix will charge? At that price, what are the profits for each company? Note that the rst number listed in bold is the prot for Apple and the second number listed that is in italics is the profit for Samsung. (10 points) a. Can Apple and Samsung Collude to increase their prots? Why or why not? (5 points) -_ - $999 $1199 $999 $13000 $16000 $20000 Apple $22000 $19000 $16000 $1099 $12000 $15000 $18000 $18000 $15000 $13000 $1199 $9000 $13000 $16000 $14000 $12000 510000 2. LIf the US. wants to maximize tax revenues, should we impose an excise tax on McDonalds or gasoline? Why? Make sure to include an elasticity graph for both rms and the equation for elasticity and your assumptions regarding the elasticity of demand for both products.(10 points) 3. F International Trade (15) A. What is the difference between an absolute and comparative advantage? Give an example from your own life. (5 points)