Intermediate Microeconomics: Producers and Market Structure

This document provides a comprehensive solution to an intermediate microeconomics assignment. The assignment covers several key concepts, including cost functions, profit maximization in competitive markets, the impact of taxes on firm behavior, and the characteristics of monopoly markets. It explores the implications of lump-sum taxes on competitive firms, analyzing how they affect output decisions and profitability. The assignment also delves into market structures, comparing social welfare under perfect competition, single-price monopoly, and perfectly price-discriminating monopoly. Furthermore, it examines price discrimination strategies employed by monopolists and analyzes the Nash equilibrium in game theory. The solution includes detailed explanations, calculations, and graphical representations to illustrate economic principles.