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please help me on this a. (6 pts) Indi'erence curves: Suppose Yunus can choose between two products: Awesome t-shirts (A) and books (B). Yunus' indifference

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a. (6 pts) Indi'erence curves: Suppose Yunus can choose between two products: Awesome t-shirts (A) and books (B). Yunus' indifference curves are shown below, where 1C1 denotes the lowest utility, and 1C3 denotes the highest utility. Based on his indifference curves, how does he feel about awesome t-shirts, and how does he feel about books? Explain briey how you can tell. B ICl ICE [CB b. (6 pts) Supply: Suppose a monopolist producing the prot-maximizing quantity makes exactly zero economic prot. Suppose further the rm has noxed cost. What do you know about the relationship between average variable costs and marginal revenue at the prot-maximizing quantity? That is, which is higher\"? Explain briey. c. (4 pts) NonJinear pg'cing: Suppose the local supermarket offers a deal for toilet paper. You can buy one pack of toilet paper for $5, or two for $30. What type of price discrimination is this? Explain briey. d. (5 pts) Ametric information: Suppose states make car insurance mandatory for all drivers. Based on an adverse selection argument, what should happen to insurance rates as a result of making insurance mandatory? Explain briey. e. (4 pts) Mg: According to economic theory, job market signals like dressing well for interviews are not especially effective. Explain briey why that is the case. f. (5 pts) ExternaJities: You are the owner of the only gym in town. You maximize your prot by charging your consumers atwo-part tariff, with a per-visit price ofp = 0, and a monthly membership fee of T = 80. Now suppose that your gym members create a negative extemality for your neighbors, who don't enjoy hearing them brag about their workouts. To increase total surplus, how should you change the per-unit price andfor the membership fee? Note: no needlr specic numbers -just say increase/decrease/stay the same, with a brief explanation

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