If you do not want to help. Please do not post. I am asking for input on this assignment. I will post the answers to the questions that I have finished. Again, do not post if you do not want to help me.
Here are the questions.
1. Can a monopoly exist in a small town and give an example?
2. Why does the marginal revenue curve lie below the average revenue curve for a monopolist?
3. How do economists predict the rate of output for a monopoly? Is this the same when the monopoly uses price discrimination?
4. Can a monopoly make an economic loss in the long-run?
5. If a cartel like OPEC restricts the output of member nations to less than they are capable of producing with their existing levels of capital equipment, does the social cost of a monopoly increase? Explain.
6. What are the key characteristics of a monopolistically competitive industry and what is an example from reality other than the ones in Chapter 26?
7. What are the key characteristics of oligopoly?
8. Why is there only one model in economics to predict firm behavior in competition, monopoly, and monopolistic competition, but more than one in oligopoly?
9. What does strategic behavior mean with respect to oligopoly firms?
10. How can firms deter market entry by potential rivals?
11. Why do we want to have the government regulate natural monopolies?
12. What are the main reasons that government regulates businesses?
13. What theories explain the behavior of regulators?
14. What are the short- and long-run effects of deregulation?
15. Given that the foundations of antitrust reflect a history of increasingly specific provisions, what are the difficulties with enforcing it?
16. Explain why the marginal revenue product curve represent a firm’s demand for labor.
17. What factors influence the price (i.e., wage) elasticity of demand for labor and why?
18. How are equilibrium wage rates determined in a competitive labor market for perfectly competitive firms?
19. Assume that perfect competitive firms are bought up and consolidated into one firm by a monopolist. If the labor market is competitive, what happens to the wage rate and why?
20. Why is the market demand curve for labor not just a simple horizontal summation of individual marginal revenue product curves?
21. Did the American labor movement ever have political problems?
22. Discuss the goals and strategies of labor unions in the context of a mining town with one large coal mine as the dominant employer of labor.
23. What effects have labor unions had on wages and productivity and why?
24. What is the current status of labor unions in the United States and what will likely occur in the future?
Here are my answers until this point.
1.Yes, because a monopoly exists when there is only one firm in a particular market for a specific good. A firm like this is called a monopolist. A monopolist has market power and control. This means that the firm’s actions can have a real influence on the price of a specific good. An example of this would be if in a small town there is only one well with no other source of water. The owner of the well has a monopoly on water.
2.Because the monopolist faces the industry demand curve which is by definition downward sloping its choice regarding how much to produce is not the same as for a perfect competitor.
3.Because output is set at the point in which marginal revenue equals marginal cost. Yes because a monopolist is able to charge different people different prices and a firm usually engages this in order to increase profits that are unrelated to differences in marginal cost.
4.*Can a monopoly make an economic loss in the long-run?*?????????
5.*If a cartel like OPEC restricts the output of member nations to less than they are capable of producing with their existing levels of capital equipment, does the social cost of a monopoly increase? Explain.*???????????
6.Monopolistic competition is defined as a market situation in which a large number of firms produce similar but not identical products. Entry into the industry is also relatively easy. So the key characteristics are a significant number of sellers in a highly competitive market, differentiated products, sales promotion and advertising, and easy entry of new firms in the long run. Examples include the markets for restaurants, lunch meant, cereal, clothing and some service industries in large cities.
7.An oligopoly is defined as a market structure in which there are very few sellers. Each seller knows that the other sellers will react to its changes in prices, quantities, and qualities. Therefore it is characterized by having a small number of independent firms that constitute the entire market.
8.The number of models is relative to the amount of firms engaged in the market. The reason competition, monopoly, and monopolistic competition only have one model is because there is only one firm. Where as in an oligopoly there can be multiple models dependin

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