Answer all THREE questions below using economic concepts to validate your explanations. One paragraph for each question.
Q1. Should firms in perfectly competitive markets advertise? Why or why not?
Q2. Respond to the allegation that if all firms in an industry are charging the same price, this indicates the absence of competition and the presence of some form of price-setting agreement.
Q3. Compare the four market models (perfect competition, monopoly, oligopoly, and monopolistic competition) on the probability of each to earn economic profits in the long-run and their social desirability.