Microeconomics Discussion
This week we've begun the study of imperfectly competitive markets by looking at monopolies. In 75 - 150 words, please compare and contrast monopoly and perfect competition with specific regard to these points.
1. Ceteris paribus, how do their demand elasticities compare? Why?
2. If you ran a business, would you prefer to be a monopoly or a perfectly competitive firm? Why?
3. Finally, and only tangentially related, are monopolies guaranteed a profit? Why or why not?