Unformatted text preview: he following questions. It is suggested that you spend
approximately half your time on the first question and divide the remaining time equally between the next two
questions. In answering the questions, you should emphasize the line of reasoning that generated your results; it is
not enough to list the results of your analysis. Include correctly labeled diagrams, if useful or required, in explaining
your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional
1. Assume that two firms are operating with identical cost schedules, but one firm is in a perfectly competitive
industry, and the other is in a monopolisticall...
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