1. The fighters of the Ultimate Fighting Championship (UFC) filed suit against the UFC, alleging that the UFC unlawfully monopolized the output and input markets in mixed martial arts. In particular, the fighters claimed that UFC used long-term exclusive contracts to permanently lock them into the UFC and foreclose rival mixed martial arts promotions. Under which act do you think the UFC was charged? Do you feel the suit was justified, why or why not?

2. Moses Inc. is a small electric company that provides power to customers in a small rural area in the Southwest. The company is currently maximizing its profits by selling electricity to consumers at a price of $0.15 per kilowatt-hour. Its marginal cost is $0.05 per kilowatt-hour, and its average cost is $0.15 per kilowatt-hour. A government regulator is considering a proposal to regulate the firm's price at $0.05 per kilowatt-hour. Would such a policy improve social welfare? Why or why not?

3. Is "fairness" the economic basis for government laws and regulations designed to remedy market failures? If so, why; if not, what is the economic basis?

4. Discuss this statement: "If the United States imposed a uniform excise tariff on all foreign imports, all U.S. businesses and workers would benefit. Consequently, if a bill to impose a uniform excise tariff were introduced in the U.S. Congress, it would unanimously pass." Do you agree or disagree, why?