Review of Market Structure Thinking Questions

Are there many firms? hat is the significance of the si!e of each firm? hat is the nature of the pro"uct? #s there perfect information in the market? hat are the characteristics of the factors of pro"uction? Are there $arriers to entry in the market? hat are the types of $arriers to entry hat is the significance of $arriers? hat is the pricing policy practise" $y each firm?

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Thinking Questions
hat is the non% pricing practise" $y each firm? hat is the shape of the "eman" curve for each firm? &'se "iagram to illustrate( hat is the significance of this on MR an" TR of each firm?

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

&)raw "iagram an" e*plain(

Thinking Questions
MC+AC curves

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

hat is the profit ma*imising con"ition for each firm?

hat is the SR an" ,R e-uili$rium for the firm? hat are the shut% "own con"itions for a typical firm in the SR? hat kin" of profit "oes each firm make in the SR? hat kin" of profit "oes each firm make in the ,R? hy? )istinction $etween firm an" in"ustry )istinction in terms of price control an" shape of "eman" curve.

Thinking Questions
R/) % incentive % a$ility Allocative 0fficiency

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

&#llustrate with a "iagram( Pro"uctive 0fficiency 0conomies of Scale 0-uity 1ariety of Choice