a) What is the dead weight loos (DWL) of a monopoly?

(b) What does it mean when we say that there is market failure?

(c) A firm triples her capital and the number of employees. The output doubles. Does the firm's production function exhibit increasing or decreasing returns to scale?

(d) State the law of demand.

(e) Are CD players and CDs substitutes?

(f) Do the firms make profits in a perfectly competitive market?