a) Give a hypothetical local examples of each situation listed below (any example applied to Trinidad and Tobago ). Be sure to explain how your example represents the situation listed. i. A situation involving Ricardian Rent. ii. Direct effect relating to product differentiation. iii. Decreasing cost case of the long-run supply curve. iv. Substitution effect as it relates to pricing in the input market. v. Using the situation described in part iv), explain the output effect. vi. A monopsony. vii. Nonlinear - Two Part Pricing viii. Search cost. ix. Pigouvian Tax b) Without the use of a graph, explain why the perfectly competitive outcome is consistent with welfare maximization in the long run but not necessarily in the short run