Analyze the differences and similarities among firms for two different market structures: Monopoly and Monopolistic Competition. Clearly demonstrate how both types of firms determine the quantity (Q) to produce that maximizes profit.
Contrast the long-run profit levels that prevail in Monopoly with those of Monopolistic Competition, and explain clearly why the differences occur.
How do the long-run end-results of Monopoly and Monopolistic Competition compare with the end-results of perfect competition, in terms of the impacts on efficient resource used in the overall economy?
Why do economists make a distinction between “natural monopoly” and “artificial monopoly”? In your answer, be sure to identify how these types of monopoly differ from each other, and why government responses (especially in the US) to these types of monopoly are quite divergent.
Provide an example of an industry that you think is either a monopoly or is monopolistically competitive, and provide reasons as to why you think the category fits that industry.
Throughout your answer to this question, use graphs, completely labeled, to accompany your written analyses.