7. If the price in a market is below the equilibrium price, what exactly will happen to restore the market to equilibrium?
8. If doubling all inputs increases a firm’s output by 70%, what can you conclude about the shape of the firm’s long run average cost curve? What does this imply?
9. If you were a mid-sized firm in an oligopolistic industry, would you be more likely to search for acquisition targets if your industry was characterized by economies, diseconomies, or constant returns toscale?
10. How would you determine if Tesla is efficient from society’s standpoint?