Explain the difference between the demand curve facing a monopoly firm and the demand curve facing a perfectly competitive firm.
Review the following questions and prepare a 4 to 5 page paper on the following questions:
- Explain the difference between the demand curve facing a monopoly firm and the demand curve facing a perfectly competitive firm.
- Which of the following is (are) most likely to be produced in a market resembling a monopoly – oil, books or movies, tap water, and wheat. Defend your answer in economic terms.
- Which type of firm is most likely to have zero economic profit in the long-run: monopoly, oligopoly, monopolist competition or perfect competition? Explain.
- The government often has two conflicting roles. It protects consumers by keeping prices fair and promotes a free market (entry of firms). Suppose your firm has a special patent. Do you think patent licenses should expire? Be sure to support your argument with references and economic concepts from previous modules as well.
Use any good quality resources you can find. Be sure to cite all sources within the text and provide a reference list at the end of the paper.
Length: 4–5 pages double-spaced and typed.
The following items will be assessed in particular:
- Your ability to understand the differences between perfect and imperfect competition.
- Some in-text references to the modular background material (APA formatting not required).
- The essay should address each element of the assignment. Remember to support your answers with solid references including the case readings.