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In comparing monopoly to a perfectly competitive market, which of the following is false? O A) Market price will be higher under monopoly. B) Equilibrium quantity will be higher under perfect competition. c) consumers will be worse off with the monopoly. D) Employment will be higher under monopolyWhich of the following is the best example of a monopolistically competitive market? ( A) The bread market. O B) Public utilities O C) The hotels market. D) Public gardenThe Herfindahl-Hirschman Index is a measure of market power that focuses on: O A) the ratio of the price of a firm's product to the price elasticity of demand for the product. O B) the share of the market controlled by the X largest firms in the market. ( C) the sum of the squares of the market share of each firm in an industry. O D) the difference between a firm's product price and its marginal costs of productionAll of the following are possible characteristics of a monopoly except: A) there is a single firm. O B) the firm is a price taker. C) the firm produces a unique product. D) the existence of some advertisingQuestions Complete the cost and profit tables provided above (Tables 2 and 3). Use the Index function to find price that corresponds 1. What is the price that maximize profit for technology A? with maximum profit. Index the price schedule. This method is optional. 2. What is the maximum profit attained for technology A? 3. What is the price that maximize profit for technology B? 4. What is the maximum profit attained for technology B? 5. What is the price that maximize profit for technology C? 6. What is the maximum profit attained for technology C? 7. What is the profit for the "best" technology? 8. What is the price for the "best" technology? 9. If the value of cell C22 (VC of Technology C) is changed to $19 does the choice of "best" technology change? 1 if Yes, 0 if no 10. If the value of cell C22 (VC of Technology C) is changed to $19 does the choice of optimal price change? 1 if Yes, 0 if no IMPORTANT Note If you changed the value of cell C22 in order to answer 08 or Q9, be sure to reset its value to $17.00 before saving and submitting your spreadsheet.3 Medium-run: The AD-AS model Analyze the closed economy of Section 2 in the medium-run, when the ag- gregate price level is fully flexible and P = Pe 3.1 Labor market equilibrium: The WE-PE model and the AS curve Consider a labor market with price setters (firms) and wage setters (unions and/or firms). There are two type of imperfections: one regarding the prod- uct market and one the labor market. The labor market equilibrium can be described by using the wage-setting equation (WE) and the price-setting equation (PE). The wage-setting is described by the relationship W = PeAF(u , z ), (19) where W is the nominal wage, Pe is the expected price level, A the average labor productivity, F(., .) the implicit function of the expected real wage in productivity terms, u the unemployment rate, z an exogenous variable, cap- turing either the tightness of the labor market or the role of unemployment subsidies on the wage determination. The unemployment rate is defined as (LF - N) (20) LF where LF is the labor force and N the employment level. As in the medium-run expectations are realized, P = Pe in (19). Firms fix prices by setting a mark-up () on labor costs per unit of output. The price setting equation (PE) is WN P = (1 + /)[(1+0)-yl (21) where o is the payroll tax rate