Here is an optional assignment to be completed in lieu of class on Nov. 16. Please turn this in to me in class on Nov. 28.

Define: increasing , constant, and decreasing cost industries.

Why is perfect competition often used as a benchmark from which to compare other market structures?

What is a price searching firm? Define monopoly. What are the three barriers to entry discussed in class today?

Mr. Hudson notes that if he produces 10 pairs of shoes per day, his average fixed cost (AFC) is $14 and his marginal cost $8; if he produces 20 pairs of shoes per day, his MC is $15. What is his AFC when output is 20 pairs of shoes per day?
a. $5
b. $7
c. $8
d. $15

Read about barriers to entry with respect to the legal profession.

Also, here is a remarkable example of spontaneous order.