Problem
1. Define economies of scale. What are diseconomies of scale? Please provide some examples of both in production. (75 words)
2. What are the conditions for a firm to enter a competitive market? What are the exit conditions for the firm to leave a market? (75 words)
3. Why do firms continue to operate in a market once they receive zero economic profits? (75 words)
4. Define a monopoly. How is a natural monopoly market different from a conventional monopoly? (75 words)
5. Why are monopolists able to price discriminate effectively? (75 words)
6. Please discuss oligopoly and monopolistically competitive markets. How do these two market structures compare to monopoly and perfectly competitive markets? (75 words)
7. Define game theory. What is a Prisoners' Dilemma game? What is a Nash equilibrium outcome? (75 words)