Q1. Bob's Lawn-mowing Service is a competitive firm. At the current level of production, the firm mows 10 lawns a day. Following is its revenue and cost schedule. Calculate firm's total profit.
Q2. The pharmaceutical industry is an oligopoly. Given that, firms producing prescription drugs under a brand name, can charge higher prices in their quest for profit. What do you think would happen to the public who relies on high tech new drugs, if the US government required all pharmaceutical firms to sell their drugs in a competitive market with no ability to patent their break through?