Problem 1
Explain the differences between the terms in each of these pairs: a. monopoly b. natural monopoly c. technological monopoly cartel geographic monopoly government monopoly
Problem 2
What is the relationship between economies of scale and a natural monopoly?
Problem 2
Why are sellers in a perfectly competitive market known as price takers?
Problem 2
How is monopolistic competition similar to perfect competition and how is it similar to monopoly?
Problem 2
What is the main purpose of antitrust legislation?
Problem 3
How does a patent awarded to one company act as a barrier to entry to another company wishing to enter the same market?
Problem 3
How does market allocation lead to reduced competition?
Problem 3
Why is it necessary to have standardized products in order to have perfect competition?
Problem 3
Describe some of the techniques sellers use to differentiate their products.
Problem 4
Why are standardized products sometimes found in oligopoly but not in monopolistic competition?
