2. Define "perfect competition" and "monopoly." Besides wheat, list three other products or services that have markets like perfect competition. List three products or services that have markets like a monopoly. Be detailed in your answer.

3. Shouldn't we protect the workers of those industries that are hurt by foreign competition? Explain. Be detailed in you answer

4. Assume a perfect competition industry, where each firm in the industry earns zero economic profits. Suppose there is an increase demand for the good in question. Show graphically (at the industry level and the firm level) the short run and long run effects of this increase demand , showing what happens to industry price and quantity, and firm price and quantity and profits. Be detailed in you answer.

Answer rating: 100% (QA)

Perfect Competition In perfect competition there are many buyers and sellers in the market none of whom have the power to influence the market price The goods or services offered by each seller are id... View the full answer