perfectly competitive market, monopolistic market,
monopolistic competitive market and an oligopolistic market
1. Compare and contrast the conditions for a perfectly
competitive market, monopolistic market, monopolistic competitive market and an
oligopolistic market? How would you explain the main differences among these
market structures? Identify which market structure various industries compete
in and why you think so.
2. In your own words, explain the difference between
economic and accounting profits. How could you graphically illustrate economic profits
made by a perfectly competitive firm; monopolist; and firm competing in a
monopolistic competitive market? What conditions exist when economic profits
are maximized?
3. What are some real-life examples of monopolistically
competitive, oligopoly, and monopoly markets? How do market prices differ
between perfectly and imperfectly competitive markets? Will a monopoly always
produce at a profit-maximizing level of output? Explain your answer.
