2 and 3

1 million 2 million 3 million 4 million 5 million Total Cost $150 million $200 million $240 million $320 million $450 million What type of costs does the supply curve represent to the producer? Show where (and comment on) the supply curve startup/shutdown point? How would a change in technology effect a firm's production function and supply curve? 2. You win a lottery and are offered the lump sum payment of $750,000.00 (NOW) or the right 15 to receive $200,000 per year er the next five (5) years. What is the lottery's payment plan implied rate of time preference (approximation is OK)? If you decide to take the lump sum versus the annuity. What is your implied rate of time reference in relation to the lottery's time preference? Cite an example that could cause you to change your decision on taking the lump sum versus taking the annuity? Show payment stream versus lump sum payment calculation table? 3. Describe and depict (graph) the differences between a Simple Monopoly and a Perfecty 15 Price Discriminating Monopoly? What quantity of goods/services would these entities produce given the same cost structure? What happens to 'Consumer Surplus', 'Excess Profit' and, 'Dead Weight Loss', as a market evolves from 'Simple Monopoly to Perfectly Price Discriminating Monopoly? 4. Explain and outline in a table the 'Prisoners Dilemma'? 10 How can this model be applied to economic behaviour of fims? Why is a cooperative