Nash equilibrium, long-run profits, gas prices

1. (a) A monopolist uses price discrimination to increase their profits. Where does this profit come from? Use a graph to explain your answer. (b) How is monopolistically competitive firm different from a perfectly competitive firm in the long-run? Graph this. (c) What characteristic of monopolistic competition drives this result? 2. What does it mean to be a Nash equilibrium? 3. What characteristic of market structure allows for long-run profits? Explain. 4. All else equal, what effect would the recent increasing gas price have on our economy? Graph this. 5. Omitted (Questions are also included in attachment. Do not answer Question #5)

profit maximization: equations

QPL offers mail-order storage containers for fine china. The co is the low cost provider of these quilted boxes with fixed costs of $480000per year, plus variable costs of $30per box. Annual demand and marginal revenue relations for the co. are: P=$70 - $0.0005; MR=dTR/dQ = $70-$0.001Q A. Calculate the profit maximizing aactivity level. B.Calculate the co.'s optimal profit and return on sales levels. please show steps.

managerial economics: monopoly vs perfectly competitive equilibirium

TR=$15Q-$).000005Q2(squared) MR=dTR/dQ=$15=$0.00001Q Marginal costs for production and distribution are stable at$5per unit. Calculate output, price and profits at profit-maximizing level. What record price and profit levels would prevail following expiration of copyright protection based on the assumption that perfectly competitive pricing would result?

Price and Demand

6. When the price of gasoline increases consumers may purchase more gasoline than before, if their incomes are rising as well. Concluding that there is a positive relationship between gasoline prices and the quantity demanded would be an example of: A) the post hoc fallacy. B) the failure to hold other things constant. C) the fallacy of composition. D) a mixed market economy. E) none of the above.

Production Possibilities frontier

7. When moving along a production possibilities frontier, the opportunity cost to society of obtaining more of one of the two goods: A) is measured in dollar terms. B) usually decreases as more of the good is produced. C) is measured by the amount of the other good that must be given up. D) is measured by the additional resources that must be used to produce the good. E) is usually constant.