1. Suppose there are 10 individuals with values as follows: {10, 8, 8, 8, 8, 8, 8, 4, 0, 0}. Construct a demand schedule (table), and calculate the marginal revenue of the second unit sold. (your answer does not need to be in paragraph form - consider using a table)
2. Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by $6. The first unit costs you $64 to produce. If you receive a request for proposal (RFP) on a project for four units, what is your breakeven price? Suppose that if you get the contract, you estimate that you can win another project for two more units. Now what is your breakeven price for those two units? (in words make sure you explain your logic and also show your work)
3. The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $29, $20, $16, and $12. Five buyers are willing to buy one widget at the following prices: $10, $12, $20, $24, and $29. What is the equilibrium price and quantity in this market? (your answer does not need to be in paragraph form - consider using a table)
4. Relative to managers in more monopolistic industries, are managers in more competitive industries more likely to spend their time on reducing costs or on pricing strategies? (explain in approximately 100 words)
5. Salon owners have recently started offering teeth whitening services to clients in addition to their more standard services. In a number of states, regulators have ordered the salon owners to stop, claiming that this service constitutes the practice of illegal dentistry. What group would you expect to be behind the state's efforts to ban salons from providing teeth whitening services? Why? (explain in approximately 100 words)