3) Let's have fun using the model of perfect competition in unusual ways: a. Use the model of perfect competition to predict how many radio stations will be in a town. Let's assume that the costs to set up and operate a radio station are identical, regardless of how many listeners. (5)

b. Use Long Run model of perfect competition (by this I mean the dynamics that encourage firms to enter or exit an industry) to help you should decide to change lanes frequently in traffic jams to gain an advantage. (5)