1- From the point of view of the business manager, thoroughly explain how the purely competitive firm in the short run would determine its optimal level of output and price for the: i. Profit maximizing case ii. Loss minimizing case iii. Shut down case
2- For the Pure Monopoly Market Structure 2 a. Explain how the monopolist determines the profit maximizing level of output and price. Be specific. i. Please use what you have learned about using the MR MC approach along with the use of the appropriate cost curves to create your answer.
b. You are employed by a firm with monopoly power. The boss wants to increase profits. Explain the power of price discrimination to your boss. Discuss the requirements and assumptions for successfully implementing this approach, and the likely outcomes. i. You should explain price discrimination and its 3 forms, the conditions for price discrimination, and the outcomes of price discrimination for the Pure Monopolist.
c. You work for the government in the department that is responsible for dealing with Monopoly issues. Please explain the dilemma of regulation. Please be thorough. 1. Using the information you have learned about monopoly and how it is viewed by government; please the nature of the dilemma, along with the 3 choices and the implications of those choices
3- For the Oligopoly Market Structure a. List and explain the characteristics of oligopoly and compare them to the characteristics of the other 3 market structures. i. The oligopoly market structure is one of the most significant types in our economy. Please discuss the oligopoly market structure, and list and explain the characteristics.
b. List and explain the conditions under which the Oligopolistic firm achieves profit maximization and loss minimization. Be thorough. i. Using the MR MC approach, discuss how to determine when the oligopolistic firm maximizes profit or minimizes loss in the kinked demand curve model.
c. You work for a firm that is a member of an oligopoly market. i. Explain the issues of collusion. 1. Here you should discuss the role collusion (in its various types) and how the firm might deal with the issue. ii. Explain game theory and how the firm might use this tool to achieve its business goals.