Q Question 1 8 / 8 pts The Cost Curves facing firms in the perfectly competitive market. The Firm is taking the following prices from the market. Using your knowledge of the perfectly competitive market, comment on the firm at each price level. Briefly describe the actions that will be taken by the firm and the market at each price in the short run and the long run. (P1, P3, and P4) (SR=Short Run, LR= Long Run) P1: P2: P3: P4: Name the price where firms will enter the market?- Name the price where firms will exit the market?- Name the price where the Market is in the Long Run?- Name the price where the firm is profitable is in the Short Run?- Name the price where firms are taking profits?- Name the price where firms will shut down?- Name the price where firms operate while taking losses?- Name the price where the firm is taking losses in the Short Run?- Question 2 6 / 6 pts Use the following Monopoly Prices and Quantities to define where the monopolist will produce under each of the conditions below. You must identify the proper Price and Output selection for each of the following: Use the pull down menus below each question to select your response. Profit Maximizing Monopoly -Price and Quantity Fair Market Price-Price and Quantity Socially Optimal Price-Price and Quantity 1. Profit Maximizing Monopoly Price P5 Output Q2 2. Fair Market Price Price P2 Output Q5 3. Socially Optimal Price Price P4 Output Q3 Question 3 6 / 6 pts The Perfectly Competitive market is currently at Stage #1. Stage 1-Equilibrium #1 The market then experiences an increase in Demand for the product as shown in Stage #2 Stage 2-Equilibrium #2 The Market and Firm started in Stage #1 and Moved to State #2 What is the condition of Stage #1 Long Run What is the condition of Stage #2 Short Run Where will the Firm Produce in the Long Run? Q1 Where will the Firm Produce in the Short Run? Q2 What is the Price taken by the Firm in the Short Run? P2 What is the Price taken by the Firm in the Long Run? P1

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