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Imperfect Markets
a) Discuss how the assumptions of the basic competitive model must be relaxed so that we may consider economic situations that are more realistic.
b) Define and provide an example of the following market structures:
i) Monopoly
ii) Oligopoly
iii) Monopolistic Competition
iv) Natural Monopoly
c) Discuss and graphically illustrate the welfare (Pareto Efficiency) implications of the above market structures.
i) Can governmental intervention improve welfare?
ii) Can governmental intervention be harmful in some special cases?
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Vertical integration is relatively more attractive:
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