Problem
1. What are the necessary conditions for a perfectly competitive market to exist?
2. Why do competitive firms earn zero economic profit in the long run?
3. Describe the two-step process used to identify the profit-maximizing level of output for a monopolist.
4. Describe the difference between a monopoly and a natural monopoly.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.