Q1. Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, as well as marginal costs.

Q2. The Coase theorem implies that we never need to worry about regulating externalities because the private individuals involved will reach the efficient outcome through negotiations. Is that statement true or false? Justify your answer as well as use examples.

Q3. Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand as well as curve for wireless minutes where P is the per-minute cost in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, how large of a fixed monthly fee can it charge as well as still persuade customers to buy their service?