Microeconomics question

1. Under what conditions should a competitive rm shut down in the short run? (15 points) 2. How does the demand curve for monopolist rms differ from the demand curves for rms in competitive market structures? (15 points) 3. What do rms in a perfectly competitive market and monopolistic competitive market have in common? How are they different in the long run? Explain using appropriate graphs. (25 points) 4. Which, if any, of the following observations about an industry would imply that it is not perfectly competitive? Briey explain your reasoning behind your selections. (15 points) 3. Firms are currently making economic prots. b. Two rms produce 60 percent of the total industry output. c. Firms issue coupons offering a price discount. 5. Larry, Curly, and Moe run the only saloon in town. Larry wants to sell as many drinks as possible without losing money. Curly wants the saloon to bring in as much revenue as possible. Moe wants to make the largest possible prots. Using a single diagram of the saloon's demand curve and its cost curves, show the price and quantity combinations favored by each of the three partners. Explain. ( 30 points)