QUESTION 1: Discuss, using examples and academic references, the statement that perfect competition gives an optimal allocation of resources but that the existence of scale economies may make perfect competition impossible.
QUESTION 2:Compare and contrast the ‘five forces' analysis of competitive structure with the S-C-P (structure-conduct-performance) models of perfect competition, monopoly and oligopoly. Pay particular attention to the aims of the different approaches and their overlaps.
QUESTION 3:How would you explain an industry with monopolistic competition using a five forces analysis?