1. Apartments in New York City are subject to rent control. Apartment owners there often require tenants to purchase their furniture from them. Why?

2. In the long run, a firm could always produce twice as much simply by doubling the amount of every input employed. So in the long run there must be constant returns to scale." Evaluate.

3.In a competitive industry, for any firm there may be internal economies of scale over a certain range. But each firm must operate in the region where internal diseconomies of scale dominate." True or false? Explain.

4 .Under what circumstances would you expect a rise in demand for an industry's product to be met primarily by a short-run output response by existing firms? By a long-run response by existing firms? By entry of new firms?