Question 1. Compare and contrast the conditions for a perfectly competitive market, monopolistic market, monopolistic competitive market and an oligopolistic market? How would you explain the main differences among these market structures? Identify which market structure various industries compete in and why you think so.
Question 2. In your own words, explain the difference between economic and accounting profits. How could you graphically illustrate economic profits made by a perfectly competitive firm; monopolist; and firm competing in a monopolistic competitive market? What conditions exist when economic profits are maximized?
Question 3. What are some real-life examples of monopolistically competitive, oligopoly, and monopoly markets? How do market prices differ between perfectly and imperfectly competitive markets? Will a monopoly always produce at a profit-maximizing level of output? Explain your answer.