Questions:
1-What will happen if economic profits are greater than 0 in perfect competition? What about if profits are greater than zero for a monopoly? Be certain to explain why there is a difference by incorporating the characteristics of each market structure.
2-What does MR=MC tell us? Where do firms produce at that point? What if MR were greater than MC, what would firms do? What if MR is less than MC, what would firms do? Be certain to explain your answer.
3-What are some of the barriers to entry in monopoly (reasons why monopolies can exist)? Be certain to explain your answer.
4-Why do monopolistic competitive firms tend to advertise so much? Do you think it is waste of resources? What behavior do oligopoly firms tend to engage in? Be certain to explain the reasoning behind the behavior.