Homework - Chapter 21 - Due Mar 26, 2023 11:59 PM ECO 202 03 - Introduction to Microeconomics For this weeks homework, choose any three of the chapter 21 questions to complete. In a Word or Google Doc (make sure if you use Google Docs you share the document) document, provide your answers to the six questions. Be sure to identify which question number in the chapter you are answering. QUESTIONS FOR FURTHER THOUGHT AND DISCUSSION 1. How do you nd the most efcient output. and how do you nd the most protable output? 2. At the output at which a rm maximizes its prots. what two variables are equal? At the output at which a rm minimizes its losses. what two variables are equal? 3. Is the analysis for maximizing prots the same as that for minimizing losses? Explain why it is or why it isn1t. 4. What is the di'erence between the rm's short-run supply curve and its long-run supply curve? Make up an example to explain your answer. 5. At the output at which MC - MR. suppose that price were higher than AVG but lower than ATC. What should the rm do in the short run and the long run? Explain your answer. 6. Does the perfect competitor always break even in the long run? Explain why or why not. 7. Ifthc perfect competitor is losing money in the short run, what happens in the market to drive up price? 8. Two characteristics of perfect competition are perfect mobility and perfect knowledge. Make up an example of each. 9. Can you think of any dot-coms that may be considered perfect competitors? 10. Although perfect competition may not exist, explain why it is relevant to the study of microeconomics. ll. Explain why a perfectly competitive rm will not advertise. 12. Practical Application: How have you used the Internet to search for product information and lower prices? 13. PracticalApplfcation: Why might a rm produce at a loss in the short run rather than shutdown? Make up an example to illustrate your answer. 14. PracticalAppffmn'mr: Calculate the economic cost of your college education. How much more is it than the accounting cost? 15. PracticalApplfmrimi: I'm going to make you an offer you can't refuse. l'll sell you my highly protable indoor batting cages and driving range forjust $1 million. I clear $100,000 a year in prots. and the place practically runs itself. I'm the manager, but basically Ijust hang out all day hitting baseballs and golf balls whenever I feel like it. if you act right now. the place is yours. You'll have a 30-year lease. which you can break anytime you want, and, ifthings don't work out over the next two years. Iwill buy the business back from you for the same $1 million you paid for it. So, will you take my offer or not? Explain why you would or would not. 16, Web Activity: Is the coin collector's market close to being perfectly competitive? Let's use the example of silver dollars auctioned on eBay. Go to wa'w.ebay.com, click on \"Coins & Paper Money" under Categories, and select \"US Coins." Then type in \"18905 Morgan silver dollar,\" and click on search. After checking the prices of the coins, would you say the market is close to being perfectly competitive? Why or why not