Short Answer Questions: Answer the questions as detail as posisble. Explain the

Short Answer Questions: Answer the questions as detail as posisble.
Explain the difference between production in the short run versus in the long run.
Skip and Peggy are brother and sister and they fight about everything. Skip says that perfectly competitive firms maximize profit where marginal revenue equals marginal cost Peggy says perfectly competitive firms maximize profit where price equals marginal cost. Settle this sibling rivalry once and for all.
Explain why advertising is important for a monopolistically competitive firm.
In order to improve your chances of matching with someone, you decide to update your online
dating profile. Specifically, you decide that to impress potential partners you will show off
what you know about monopolies and marginal revenue. Draft out an explanation as to what
marginal revenue is for the monopolist and how it compares to price (and why) so that you can
have them all wanting to swipe right!
Gisella runs a small stand selling lemonade in a perfectly competitive market. Her husband, Dustin, tells
her that forecasted cold weather is going to lower the market price for the day and
that she is likely to lose money today if she opens her stand. He suggests that she shuts down
for the day (i.e., the short run) to avoid the negative profit. Is he right? Why or why not?
Describe a situation or interaction (between firms, countries, individuals, aliens, etc.) that would be considered a “prisoner’s dilemma.” Explain carefully why it represents a prisoner’s dilemma.