Discuss why firms have differing cost structures. 4b. What did Coase mean by the term transaction cost? 5a. Define and draw the firm's production function. 5b. What determinants allow a firm to expand? 6a. Explain why a profit maximizing competitive firm would produce up to the point where price equals marginal costs. 7a. Define industry. 7b. Discuss the life cycle of industry development in the United States, for the Cell phone industry. 8a. Define barriers to entry, as discussed by Prof. Joe Bain in 1956. 8b. List 6 different types of barriers that may be found in some industries and discuss. 9. Explain what is meant by Market power as defined in the US Anti-trust Law? 9b. At what level does the US Government consider a firm for review for Anti-trust. 9c. Give three reasons why monopolies may exist and explain them briefly. 10. Joe runs a small boat factory. He can make ten boats per year and sell them each at 35,000 each. It cost Joe 250,000 for the raw materials to build the ten boats. Joe has invested 500,000 dollars in the boat factory building. (200,000 from savings and 300,000 from small business loans at an annual rate of 10 percent). Joe can work at a competing factory working on boats for an annual salary of 80,000 per year. 10a. What is the total revenue Joe can earn in year 1. 10b. What is the value of Joe's accounting profit and Joe's economic profit? 10c. Is it truly profitable for Joe to operate his boat factory? Explain.