1. Suppose the market for kids' rides is Perfectly Competitive. What characterizes the long-run equilibrium under Perfect Competition? What is the relationship between Long-Run Average Total Cost and the profit maximizing quantity in the long-run?

a. Suppose there's a decrease in demand for kids' rides. What are the short-run and long-run impacts of the decrease in demand on the market, specifically, the market quantity, market price, and the number of businesses producing kids' rides?

2. Suppose the market for roller coasters is a Monopoly. What are the differences in the assumptions behind Monopoly and Perfect Competition? What is the impact of Monopoly power on the firm's Marginal Revenue? What is the profit maximizing quantity for a firm under Monopoly? How is the market price determined in a Monopoly market?

a. How does a Monopoly compare to Perfect Competition in terms of economic efficiency, consumer surplus, and producer surplus?