Changes

Begin studying for the midterm exam and also answer any 3 out of the following 4 questions:

Begin studying for the midterm exam and also answer any 3 out of the following 4 questions:

7.  Define the term "competition" in a new way by using another powerful term developed in this course.

8.  Define the term "competition" in a new way by using another powerful term developed in this course.

8. Suppose the underlying ''labor'' market is perfectly competitive, but there is a minimum wage above the market rate.  Then suppose that the supply of labor increases.  Explain what the result is and why.

9. Suppose the underlying ''labor'' market is perfectly competitive, but there is a minimum wage above the market rate.  Then suppose that the supply of labor increases.  Explain what the result is and why.

9.  What is the firm's profit or loss when Q=0 in the honors discussion above?  (Answer simply in terms of another cost measure.)  Is the firm profitable?   

10.  What is the firm's profit or loss when Q=0 in the honors discussion above?  (Answer simply in terms of another cost measure.)  Is the firm profitable?   

10.  (Challenging, with extra credit)  Prove mathematically that MC>MR for all Q>0 in the honors discussion above.  (Hint:  define MC in terms of the change in AVC, and then regroup the terms and draw conclusions about them to show MC>MR).

11.  (Challenging, with extra credit)  Prove mathematically that MC>MR for all Q>0 in the honors discussion above.  (Hint:  define MC in terms of the change in AVC, and then regroup the terms and draw conclusions about them to show MC>MR).

== References ==

== References ==