U OI'IS 1. Describe the relationship between marginal cost and average cost. 2. Under what conditions should a competitive rm shut down in the short run? 3. How does the demand curve for monopolist rm differ from the demand curves for rms in competitive market structures? 4. Assume that two interior design companies, Alistair and Baine, are competing for customers and if they both advertise or not advertise, the following pay off table results: a. Does each rm have a dominant strategy and if so what is it? b. What is the Nash equilibrium? 5. What firms in perfect competitive market and monopolistic competitive market have in common? How they are different in the long run? Explain using appropriate graphs