Hi, this assignment is due by tomorrow Saturday 9:00 pm
Microeconomics Discussion Questions Week 3
Please answer each of the following 8 questions in a minimum of 120 word count. Use in text citations and provide references, if any other source is used as reference, please also provide where it was retrieved from. Thank you.
1. Why do you consider Perfect Competition and Monopoly as 2 extremes in market structure?
2. How do you characterize monopolistic competition as a market structure? What is your understanding of product differentiation?
Resource: Colander, D. C. (2013). Microeconomics Chapter 14: Monopoly and Monopolistic Competition, Economics (9th ed.). New York, NY: McGraw-Hill/Irwin
1. How would you differentiate oligopoly from monopolistic competition?
2. Knowing the 4 basic market structures, please respond to the following: Compare the 4 types of market structures we studied as to Output Decisions, Interdependence, and Pricing Decisions.
Colander, D. C. (2013). Microeconomics Chapter 15: Oligopoly and Antitrust Policy, Economics (9th ed.). New York, NY: McGraw-Hill/Irwin
1. We had learned that technology or technological innovations lowers cost of production and makes firms more efficient, Which of these 4 market structures is most and least conducive to technological change. Why?
2. Soft-drink companies pay universities for the exclusive “pouring rights” to sell their products on Campus. Is the sale of pouring rights beneficial or harmful to students? What would likely happen if there were no pouring rights on campus?
Colander, D. C. (2013). Microeconomics Chapter 16: Real-World Competition and Technology, Economics (9th ed.). New York, NY: McGraw-Hill/Irwin
Please watch the videos, which is the resource to answer the following questions. Thanks.
1. Why does the Government create monopolies through the patent system? Is the patent system the only way how to create government monopolies?
Video Resource: https://www.khanacademy.org/economics-finance-domain/microeconomics/perfect-competition-topic/monopolies-tutorial/v/monopoly-basics
2. How does a monopolist rationally optimize profits?
Video Resource: https://www.khanacademy.org/economics-finance-domain/microeconomics/perfect-competition-topic/monopolies-tutorial/v/monopolist-optimizing-price-part-1-total-revenue