1.do the long run equilibrium level output and price is monopolistically competitive market maximize social welfare ? why?

2.describe the contributions of monopolistically competitive market model to micro economics theory?

3.suppose that the market demand for a product by one larger firm and many small firms is given as p=300-y.the total amount of output supplied by the smaller firms is given by y1=49p.if the marginal cost of the larger firm is equals to c(y1)=2.96,what price should the firm change to maximize its profit ? how much the industry produces as a whole at this price ?

4.given the demand function of two duopolist as

p=40-0.4y where y=y1+y2,output produced by two firms

y1-output produced by firm - 1

y2-output produced by firm - 2

if the cost function of two firms given as

tc1=0.6y1^ tc2=10.4y2

a. find the equilibrium price and output levels of each firms assuming both firms are operating under cournot`s assumption

b. find the equilibrium price and output level of each firms assuming the two firms are stackleberg duopolist and firm 2 is the leader firm

c. assuming these two firms are merged to form one monopoly firm ,calculate the equilibrium and output of the firm

d. if the two firms agreed to share the market in such a way that low cost firm produce these fourth of the total output determine the price and quantity that will maximize the profit of low cost firm

5.discuss the relationship between returns to scale and homogeneity of production function. and differentiate which of the following production function is/are homogeneous ?

A. q=l + k

B. q=10l +k

C. q=l+ l k +k

D. q=1.2+k