1. The following market demand and firm cost conditions describe a perfectly competitive industry p = 1000 - 0.001Q TO = 20q - 0.2q2 + 0.001q where TC is total cost. All firms are identical. Determine the long-run equilibrium price (p), market output (Q), firm output (q) and number of (identical) firms. (Hint: marginal cost is MC = 20 - 0.4g + 0.003q?) (10 marks) 2. The City of Calgary has a more or less free market in taxi service. Any respectable firm can provide taxi service as long as the drivers and cabs satisfy certain safety standards. Let us suppose that there is a constant marginal cost and average cost per trip of a taxi ride equal to $5 and that the average taxi has a capacity of 20 trips per day. Let the market demand function for taxi rides be given by Q = D(p) = 1100 - 20p, where demand is measured as rides per day and price is measured in dollars. Assume that the industry is perfectly competitive (a) What is the competitive equilibrium price per ride? What is the equilibrium number of rides per day? What is the minimum number of taxi cabs in equilibrium? (5 marks) (b) During the Calgary Stampede, the influx of tourists raises the demand for taxi rides to D(p) = 1500 - 20p. Find the following magnitudes, based on the assumption that for these 10 days in July, the number of taxicabs is fixed and equal to the minimum number found in part (a): equilibrium number of rides per day and profit per cab per day. (4 marks) (c) Now suppose that the change in demand for taxicabs in part (b) is permanent. Find the new equilibrium price, equilibrium number of rides per day, and profit per cab per day. How many taxi cabs will be operating in equilibrium? How does the new equilibrium compare to the equilibrium found in part (b). Explain why the answer found here in part (c) differs from the answer found in part (b). (4 marks) 3. Suppose that there are four identical firms in the market, each having a marginal cost given by: MC(q) = where q is the output of an individual firm. The market inverse demand is given by: P = 200 - .5Q where Q is the total amount sold in the market. (a) What is the supply curve of the industry when there is competition between the four firms? (3 marks)4) Imagine that you are involved in a car accident with a FedEx truck and your injuries are $200,000 and the injuries to the FedEx driver are only $20,000. You are 80% at fault and the FedEx driver is 20% at fault. If this accident happened in a contributory negligent state, you would be entitled to: a. your monetary recovery would be $24,000. b. your monetary recovery would be $16,000. c. your monetary recovery would be $40,000. d. your monetary recovery would be $56,000. c. your monetary recovery would be $0. 5) Imagine that you are involved in a car accident with a FedEx truck and your injuries are $200,000 and the injuries to thee FedEx driver are only $20,000. You are 80% at fault and the FedEx driver is 20% at fault. If this accident happened in a pure comparative negligent state, such as California, or Washington, you would be entitled to: your monetary recovery would be $24,000. your monetary recovery would be $16,000. your monetary recovery would be $40,000. your monetary recovery would be $56,000. your monetary recovery would be $0. 6) Imagine that you are involved in a car accident with a FedEx truck and your injuries are $200,000 and the injuries to thee FedEx driver are only $20,000. You are 80% at fault and the FedEx driver is 20% at fault. If this accident happened here in W. Lafayette, Indiana, which follows the comparative negligence 50% rule. What would you be entitled to: your monetary recovery would be $24,000. your monetary recovery would be $16,000. C. your monetary recovery would be $40,000. your monetary recovery would be $56,000. your monetary recovery would be $0. 7) Imagine that you are the very young president of Denning Potteries, Inc., having succeeded your father, who retired unexpectedly due to illness. Your feeling of insecurity (relating to youth, inexperience, and whispers of nepotism) has just been greatly increased by your election to the presidency of the Association of Pottery Manufacturers at their annual meeting. One probable determinant in the election was your statement during the campaigning that you wished to bring order to the chaotic problems that have plagued the industry. Each member characteristically makes a broad line of products ranging from fine china to decorative pieces to earthenware for the gardening industry. The allocation of fixed costs, the determination of overhead, and the isolation of variable expenses have always been problems. Consequently, prices have seldom been perceived as closely related to real costs but have fluctuated with competitive forces in a marketplace with literally hundreds of competitors. After a hastily called meeting with your executive committee, a plan evolves. You will propose that a survey be drafted that will be distributed to all member of the association. The survey will ask for specified information from each respondent on the pricing methods employed with their respective organizations. The results will then be used by a specifically formed accounting committee to devise a standardized method of computing costs, markups, and prices for the industry. When completed, it will be provided to the members, which are all in the same industry, for their own use, if they see fit, on aDATE NAME 1. What are the main purposes of a legal system? (that is, what benefits does a legal system give to a nation?] 2. Name and describe the two most common types of legal systems in the world today. 3. What are the main sources of law in the U.S. common law system? 4. What is the difference between procedural law and substantive law? 5. What is federalism? 6. How do past decisions issued by judges make the law more predictable? 7. What are the three branches of the federal government, and how do they exercise the powers given to them in the U.S. constitution? B. Subject matter jurisdiction is the power to issue orders affecting the rights of a plaintiff and defendant. True or false? 9. Federal question jurisdiction is one of the types of jurisdiction exercised by federal courts. True or false? 10. The Tenth Circuit Court of appeals exercises which of the following types of jurisdiction? (Circle the correct answer) a. Appellate jurisdiction b. Original jurisdiction c. Special court jurisdiction d. Personal jurisdiction 11. A party who begins a lawsuit by filing a is called a plaintiff. 12. The party who files an indictment in a criminal court is called the 13. Describe two ethical duties of an attorney who represents a party in a lawsuit. 14. After all the evidence is presented in a trial, what is the job of the jury? 15. A person who has an actual stake in the outcome of litigation is said to have 16. A court may exercise filed. Jurisdiction over a party who has minimum contacts with the state in which a case is 17. A court may permit the filing of a class action if (Circle all that apply)a. There are common questions of law or fact b. Diversity jurisdiction is present c. Separate lawsuits for all plaintiffs would be impractical d. A lead plaintiff will adequately protect the interest of the class 18. During the discovery process in a civil case, a party may use which of the following? (Circle all that apply) a. A motion to suppress evidence based on an illegal search b. Requests for admission to another party c. Depositions for possible trial witnesses d. A motion to recuse the judge for bias 19. How may a deposition be used during a trial? 20. If the statute of limitations has expired, what type of motion should a defendant file? a. A motion for default judgment b. A motion for judgment notwithstanding the verdict C. A motion to dismiss d. A motion for summary judgment 21. The process used to select a jury is called a. Res judicata b. Voir dire c. Res ipsa loquitor d. Stare decisi 22. Cross examination is designed to permit a party to exercise which constitutional right? 23. The process used to collect a money judgment is called a. Sentencing b. Garnishment C. Execution d. Liquidation 24. A method of alternate dispute resolution (ADR) without using a third party neutral is known as 25. An ADR technique that encourages the parties to recognize their common interests is called 26. After hearing the evidence and arguments of the parties, an arbitrator issues 27. Which type of ADR most resembles a trial