1.Diagrammatically identify the quantity of output a monopolistic competitor produces and the price it charges.

2.Diagrammatically identify a monopolistic competitor that is incurring losses.

3. Total industry sales are $105 million. The top four firms account for sales of $10 million, $9 million, $8 million, and $5 million, respectively. What is the four-firm concentration ratio?

4.Refer to the accompanying figure. Because of a cartel agreement, a firm has been assigned a production quota ofq2 units. The cartel price is P2. What do the firm's profits equal if it adheres to the cartel agreement? What do the firm's profits equal if it breaks the cartel agreement and produces q3?

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