5. (10 points) Explain why it is unwise to bid more than your valuation of the good in a sealed bid second-price auction.

(2) If the weapons producer cannot price discriminate, what price and quantity of guns will it sell to each country?

(3)Will the weapons manufacture make more profit from price discrimination? Briefly explain. Why is that the manufacturer will likely be able to practice price discrimination?

(4) Which country will benefit from price discrimination? Which country will be worse off from price discrimination? Explain briefly.

(5) Is the deadweight loss higher under price discrimination or a single-price? Show mathematically.

(1) What are the corresponding Stackelberg leader-follower equilibrium output level and profits for two firms?

(2) Can Firm A deter the entry of its rival, Firm B? If yes, how?

Question 1: What is Bossler's response to the hypothesis posted by Hymes and Hartwell?

Question 2: What is the major point Hymes made in his revisions on his and Hartwell's original idea of "localist shift"?

B. Translation: (30 points) Please translation the following passage by Xiaoqiao Ling (Feeling the Past in Seventeenth-Century China, pp.1-2) into Chinese. "This book studies the immediate responses of literary men to the Manchu conquest of China (1640s- 1680s), as well as their later contemplations of that era through the act of writing. The Manchu conquest created an unprecedented rupture in Chinese cultural life, marked particularly by the Qing court's implementation of a haircutting policy(tifa ling 薙髮令)that mandated that non-clerical male subjects shave their foreheads and plait their hair according to the Manchu custom.2  Many scholar officials (shi 士), especially those in the Jiangnan area who thought they resided at the very center of cultural refinement, found themselves adrift when they saw the socio-political order crumbling, leading to the loss of 'This Culture of Ours' (siwen斯文)”

C. Composition:(25 points) Please write a short essay explaining whether studying history can (or cannot) help us understand the present.