Assignment:
1. Revenue structure: Why does the demand curve facing each individual producer (firm) normally slope downward?
2. Revenue structure: Why does marginal revenue for an individual producer normally decline as output (sales) increases?
3. Profit maximization: Explain why profit maximization for an individual firm normally occurs at the quantity output that equates marginal cost and marginal revenue.
4. Adjustment mechanism: What is likely to occur if the typical firm in an industry receives economic profits, and why?
5. Supply Equilibrium: What is meant by equilibrium on the supply side?