1) For a perfectly competitive firm, if economic profits exist, how will this impact the number of firms in the industry? If economic losses exist? What will long-run economic profits be for the perfectly competitive firm?
2) Explain the difference between the individual firm demand curve for a perfectly competitive firm and the individual firm demand curve for a monopolist. What is the difference between their market demand curves?
3) Explain how a monopolist can increase profits by price discriminating. What are the conditions necessary for price discrimination?