Between 2002 - 2007, the number of active real estate agents practicing in California nearly doubled, from 139,000 to 262,000.  From 2008 - 2014, the number of active agents declined by more than a third, from 262,000 to 171,000.

a.) What is the primary reason there has been such dramatic changes in the number of real estate agents in California since 2002?

b.) Analyze the real estate agent market in terms of the three market structure characteristics.  What market structure. 

c.) During the housing bubble from 2002 - 2007, real residential housing prices increased by more than 50% and the number of homes sold increased significantly.  Yet, the median income of real estate agents actually declined (which means a typical real estate agent actually made less in 2007 than a typical real estate agent in 2002).  Explain why this may have happened.

Suppose you own and manage a hotel which has 100 rooms.  Your total costs (including all staff wages, utilities, insurance, lease payments, etc.) are $10,000 / night, such that your average total costs per room are $100 per night.  You work with an online bidding website (like Priceline) and receive a bid of $70 for a single night in the following week.  You currently have several vacant rooms available on this night.  Should you accept this bid?  Briefly explain what factors this decision would depend on.