1. p. 168, How might you benefit from the mall? How might it negatively impact your life?
2. How are competition and the profit motive related?
1. What would happen if consumers did not have easy access to information about products and services?
2. p. 170, What conditions for perfect competition are met in this photograph, and how?
3. p. 171, What would happen if the equilibrium price increased to $22.50?
1. p. 171, What is the difference between marginal cost and marginal revenue at the quantity of 129?
2. p. 171, What would happen if the firm in the graph tried to charge a price greater than $15?
3. p. 171, Use your own words to summarize the reasons why perfect competition keeps prices low.
1. p. 172, Reading Check, Describing, Why does perfect competition serve as a theoretical market structure?
2. p. 173, How does the advertisement on this billboard differentiate this product from other colas?
3. p. 173, Reading Check, Comparing, How is profit maximization in a monopolistic firm different from that of a perfect competitor?
1. Think of an advertising jingle that influenced you to buy a product. Explain its effectiveness.