Questions:
1 What are the relationship between marginal cost and the supply curve for the purely competitive firm. Show a model.
2."Pure monopoly guarantees economic profits." Discuss whether this is a valid statment and show an illustration of such
3. What are the major features of monopolistic competition compared to pure competition and pure monopoly?Show and explain models of each kind.
4. why do monopolistically competitive firms spend funds for product differentiation and adverstising when this practice only adds to the firm's costs? Give 5 examples of products that fit this explanation.
5. Discuss the "Law of diminishing returns " as it relates to Consumer Behavior. Show a table " schedule " that demonstrates. B) additionally, show and explain the consumer equilibrium model.