What are the key characteristics of perfect competition? How does monopoly differ from perfect competition? Which market achieves economic efficiency? Write an example of perfect competition, and one for monopoly.
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- How is monopoly different from perfect competition?Compare the efficiency of monopoly and perfect competition. Which is more efficient? Explain your reasoning and illustrate with a hypothetical example.Can the absence of government intervention be a similarity between perfect competition and monopoly?
- Research the difference between pure competition and monopoly pricing. Compare and contrast the differences between the two and then explain which you would prefer if you were a shipper (you’re paying the bill) and why? Also, consider your answer if you were the carrier (you’re getting paid) and explain how you might feel differently and why?These two cases provide examples of markets that are characterized neither as perfect competition nor monopoly. Instead, these firms are competing in market structures that lie between the extremes of monopoly and perfect competition. How do they behave? Why do they exist?Use the cost and revenue data to answer the questions. Quantity Price Total Revenue Total Cost 10 90 15 80 20 70 25 60 30 50 35 40 900 1200 1400 1500 1500 1400 675 825 1025 1250 1500 1850 What is marginal revenue when quantity is 25? What is marginal cost when quantity is 15? If this firm is a monopoly, at what quantity will profit be maximized? If this is a perfectly competitive market, which quantity will be produced? $ 20 $ 90 Incorrect quantity: 6 Incorrect quantity: 8 Incorrect