Question 2.

There has been a lot of talk about supporting small businesses during the pandemic. Yet, business at Walmart is booming. Whether we consider Walmart a monopoly or an oligopolistic firm, we know that price is higher than a competitive firm and output is restricted. Households and business use Amazon or FedEx or UPS for orders and delivery. Same thing about price holds true for these "big" companies.

How do we reconcile the talk about supporting small business with our actions? Use economic vocabulary - can you talk about opportunity costs? or less than efficient output and higher prices? what do these large firm promise to towns?

QUESTION 3. (20 points} 11 11 IO A. Why would this rm be described as a monopolistically competitive firm? B. What is the profit max or loss minimizing output for this firm? How do did you find your answer? C. What is the profit max or loss minimizing price for this firm? How did you find your answer? D. Is this firm earning a profit or minimizing losses? What is the amount of the profit or loss? How did you find your answer? E. Is this the short run or the long run? How do you know