1. This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4 th edition, McGraw-Hill. Problem 1A Q P 2510 20 60 100

2. Problem 1.B This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4 th edition, McGraw-Hill.

3. Problem 1.C This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4 th edition, McGraw-Hill.

4. Problem 2 This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4 th edition, McGraw-Hill.

5. Problem 3.A This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4 th edition, McGraw-Hill. AC PUPU PCPC

6. Problem 3.B  Since price advertising is likely to increase the fraction of informed consumers, it may have the effect of eliminating the profitability of the high price alternative.  The 1974 Canadian grocery price experiment suggested that publishing grocery prices each week in the newspapers did tend to bring down average prices. This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4 th edition, McGraw-Hill.

7. Problem 4.A This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4 th edition, McGraw-Hill. q 100 10 100 MC 90 Set unit price at MC= $10; Set the membership fee equal to consumer surplus = (100-10)90/2= $4,050 P

8. Problem 4.B This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4 th edition, McGraw-Hill. q 100 10 100 MC 90 P 200

9. Blank Slide This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4 th edition, McGraw-Hill.