Problem 1: Describe an externality created by a firm in your state.
Problem 2: What are the social costs associated with the externality?
Problem 3: List three remedies that the federal, state, or local government could introduce to reduce the problem.
Problem 4: Why is it important for a profit maximizing firm to consider market structure in determining the price and output of its product or service?
Problem 5: How do you determine the profit maximizing level of production in terms of price, marginal revenue and marginal cost for the firm you are considering?
Problem 6: Has the industry your workplace ever shifted market structures? Discuss. If you do not work at a private-sector firm, then you could discuss a workplace you are familiar with.