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2. Show graphically the optimum output level in the short-rum for a monopolistically competitive firm experiencing a. (positive) profit b. Break-even c. Accruing negative profit yet continuing to operate d shut-down 3. Explain why the OPEC cartel fomed by nations supplying majority ofthe oil to the un-satiating Westen world can not seem t putits acttogether to maintainits limited level of output 4. A price-leader produces quantities at prices that the rest of the small otherwise competitive) fims cannot fulfll Show gaphically and explain that the price lea der sets its optimum output level (and price) where MR-MC; and small firms provide th rest ofthe quantity at the price the leader has set. 6. Show, by building a payoffmatrix, that in the case of non-cooperative, one-time strategy pursued by two players, the outcome would likely be sub-optimal (not as good as another altemative) 7. Explain how Marginal Revenue oflabor represents the fims demand curve. Explain factors shifting demand for labor 8. Explain how a firm sets its optimum input (labor) level How is this optimum amved at Show graphically the labor input decisions ofthe following situations a Competitive labor market and competitive goods (commodity) market b Competitive labor market and monopoly in the goods market

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