1 "You are the manager of a firm that produces a product according to the cost function C(qi) = 160 + 58qi 6qi2 + qi3. Determine the short-run supply function if:

a.You operate a perfectly competitive business.

b.You operate a monopoly.

c.You operate a monopolistically competitive business"

2 Recently, the spot market price of U.S. hot rolled steel plummeted to $400 per ton. Just one year ago, this same ton of steel cost $700. According to Metals Monitor, the drop in price was due to falling oil prices, along with a rise in cheap imports and excess capacity. These dramatic market changes have greatly impacted the supply of raw steel. Suppose that last year the supply for raw steel was QSraw = 600 + 4P, but this year it has shifted to QSraw = 4,200 + 4P. Assuming the market for raw steel is competitive and that the current worldwide demand for steel is Qdraw = 9,000 - 8P, compute the equilibrium price and quantity for the steel market one year ago, and the equilibrium price-quantity combination for the current steel market. Suppose the cost function of a representative steel producer is C(Q) = 1,200 + 15Q2. Compare the change in the quantity of raw steel exchanged at the market level with the change in raw steel produced by a representative firm. How do you explain this difference?

3 Will a monopolist continue to produce in the short-run if a loss occurs? Why or why not?What if the long-run is the consideration instead?

4 "Determine whether each of the following scenarios best reflects features of Sweezy, Cournot, Stackelberg, or Bertrand duopoly:

a.Neither manager expects her own output decision to impact the other manager's out-put decision.

b.Each manager charges a price that is a best response to the price charged by the rival.

c.The manager of one firm gets to observe the output of the rival firm before making its own output decision

.d.The managers perceive that rivals will match price reductions but not price increases"

5.Jones is the manager of an upscale clothing store in a shopping mall that contains only two such stores. While these two competitors do not carry the same brands of clothes, they serve a similar clientele. Jones was recently notified that the mall is going to imple-ment a 10 percent across-the-board increase in rents to all stores in the mall, effective next month. Should Jones raise her prices 10 percent to offset the increase in monthly rent? Please Explain carefully."