1. Test Yourself D S Quantity Price P max Q* Q S P* Q max What is the deadweight loss associated with a price ceiling set at P max in the following market? None – to be binding a price ceiling must be below the market price d e c b a

2. B/CS has one large agricultural input (seeds fertilizer, feed, etc.) seller and several smaller input sellers. Which of the following market structure would best define the agricultural input market in B/C? a)Monopoly b)Perfect competition as it is agriculture c)Monopolistic competition d)Oligopoly Oligopoly – several sellers selling nearly identical products Test Yourself

3. Which of the following factors are define monopsony? a)Single buyer on the input side b)Numerous buyers and sellers c)Single buyer on the output side d)Faces an upward sloping supply curve e)Firms actions impact input price a, d, and e Test Yourself