Microeconomics questions! I need some help on how to answer these with clear det
ID: 2495262 • Letter: M
Question
Microeconomics questions! I need some help on how to answer these with clear detailed examples. This will help me with the rest of my homework.
1) What is the definition of Market Competition? List a product that you use that falls closer to the perfect competition model.
A) What is the definition of a (Market) Monopoly? List a monopoly (not utilities or public services) product or service that you use.
B) What is going on with Economists in their assessment of benefits and costs of PC and Monopoly?
C) What is the distinction between Short Run and Long Run and which ones matter most?
Explanation / Answer
1. Market competition: This is market charecterised by a complete absence of rivalry among the individual firms. Competitive market has following charecters.
Perfect competition is not available in real life. 100% competition perfect competition is absent. The very close perfect competion is seen the street food vending and another is agricultural market. In these two market most of the competitive charecteristics are present.
A. Monopoly is a market structure in which there is a single seller, there are no close substitute for the commodity it produces and there are barrier to entry.
Most closer to monopoly service is the Postal service (USPS), there is no one that serve the same purpose and the new one to entry into the market is not possible.
The product that shows monopoly is the copyrighted softerware that we use in everyday life.