5. Assume that you own a firm that produces coffee cups and operates in a perfectly competitive market for coffee cups.In the short run you use the profit maximizing rule to decide on a production level of 100 coffee cups. You have a fixed cost of $100 and it costs you $4 in labor and materials per coffee cup that you produce.

If you are able to make a profit of $200 what is the price in the market? (just write the number do not worry about the dollar sign)

8. Assume that the market for JAMS is a Monopoly market and that demand in this market is given byPd=3001/2Qd.Now assume that the only firm in the market (Jamtastic) has a marginal cost and marginal revenue given by:

MC=60+QMR=300Q.

What quantity of JAMS will be produced in this market?

9. Assume that the market for JAMS is a Monopoly market and that demand in this market is given byPd=3001/2Qd.Now assume that the only firm in the market (Jamtastic) has a marginal cost and marginal revenue given by:

MC=60+QMR=300Q.

What will be the dead weight loss in this market?

10. Now assume that the market for JAMS is a Perfectly Competitive market and that demand in this market is given byPd=3001/2Qd.Further assume that Supply in this market is given byPs=60+Qs

Now assume that Trendsetting Tavares owns one of the firms in the JAMS market and that his Marginal Cost and Total cost are as given below.

MC=60+4qTotalCost=60q+2q2

How many JAMS will Trendsetting Tavares produce in this perfectly competitive market?

11.Now assume that the market for JAMS is a Perfectly Competitive market and that demand in this market is given byPd=3001/2Qd.Further assume that Supply in this market is given byPs=60+Qs

Now assume that Trendsetting Tavares owns one of the firms in the JAMS market and that his Marginal Cost and Total cost are as given below.

MC=60+4qTotalCost=60q+2q^2

Write down the amount of the economic profit or loss that Tavares will achieve given these market and firm conditions.

12. Now assume that the market for JAMS is a Perfectly Competitive market and that demand in this market is given byPd=3001/2Qd.Further assume that Supply in this market is given byPs=60+Qs

Now assume that Trendsetting Tavares owns one of the firms in the JAMS market and that his Marginal Cost and Total cost are as given below.

MC=60+4qTotalCost=60q+2q^2

How many companies will there be in the JAMS market given current market conditions and the cost structure given.

13. Now assume that the market for JAMS is a Perfectly Competitive market and that demand in this market is given byPd=3001/2Qd.Further assume that Supply in this market is given byPs=60+Qs

Now assume that Trendsetting Tavares owns one of the firms in the JAMS market and that his Marginal Cost and Total cost are as given below.

MC=60+4qTotalCost=60q+2q^2

What is the marginal revenue on the 10th Pair of JAMS that Tavares produces?