Q3. The graph below shows the costs and revenue curves for Dollar-Daze, a typical profit-maximizing firm in a perfectly competitive market producing Good X. Answer the following questions based on the graph below. (20 points) Price, Cost ($) Quantity a. Calculate the firm's fixed cost. Show your calculations. b. Identify the price and profit maximizing quantity of Good X for Dollar-Daze. c. Calculate the economic profit at the quantity identified in part (b). d. As the market for Good X moves into the long-run equilibrium, explain what will happen to the price of Good X and why. e. Assume the cross-price elasticity of demand between Good X and Good B is positive, what will happen to the quantity demanded of Good B given the change in the long-run price of Good X in part (d)? Q4. The graph below represents Lisena's Landscaping Service's demand for labor in the town of Forest Hills. The price of cutting a standard-sized residential lawn is $50 and the market wage rate for a worker is $200 per day. Answer the guestions below. (20pt) $Wage rale per day 500 400 300 200 100 a. At the current market wage rate how many workers will the firm hire? b. Which economics principle can be used to explain why Lisena should NOT hire a fifth worker? c. What is the minimum number of lawns each worker should cut per day given wage rate of 52007 Explain with a calculation. d. What happens to the demand for labor curve if the market price of cutting a lawn increases to $65? Explain your answer. e. What happens to the demand for labor curve if the market wage rate increases from $200 per day to $250 per day? Explain your answer. Q5. The graph below represents a monopoly firm. Answer the guestions below. (20points) Price/Cost (cents per unit) 20 40 &0 &0 100 Units per day (thousands) a. Briefly explain three ways in which pricing can be set with a regulated monopoly and the intended objective of each pricing method. b. Based on the diagram, if this monopoly firm is unregulated, what will be its profit? Show your calculations. c. Based on the diagram, if this firm is regulated based on social interest theory, what will be its profit? Show and explain your calculations. d. Based on the diagram, if this monopoly is subject to rafe of return regulation, what will be the new price, output and profit of the firm? Show your calculations with explanations. e. Based on the diagram, if this is a natural monopoly that is allowed to set its price, what will be the minimum it should set in order to make a profit or break even? Explain your