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Competition and Market Power: Review the following questions and prepare a 4- to 5-page paper on the following questions:
1. Explain the difference between the demand curve facing a monopoly firm and the demand curve facing a perfectly competitive firm.
2. Which of the following is (are) most likely to be produced under conditions resembling a monopoly: oil, automobiles, diamonds, electricity transmission, and eggs. Defend your answer in economic terms.
3. Name one monopoly firm you deal with. What is the source of its monopoly power? Do you think it seeks to maximize its profits?
4. This module focuses on four types of firms:
perfectly competitive
monopoly
monopolistic competitive
oligopoly
Which of the above firms would most likely have zero economic profit in the long run? (It can be more than one type.) Explain.
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