3. Market structure and government intervention3.1 Explain with relevant examples the two key aspects to consider in degree of competition in a market structure. 3.2 Compare and explain the difference between a competitive firm and the model of monopoly. Support it with relevant graphs to show the relationship between MR and MC curves in a competitive versus monopoly structure. 3.3 Construct a graph of a firm in a monopolistic competition in the short run. Explain the optimal level of output for the firm and the price it must charge to realise profits. 3.4 Draw a graph to compare and explain the 'output and efficiency levels' in a perfect competition, monopoly/oligopoly and monopolistic competition. 3.5 Consider two specific examples to justify why government intervention is required to create competition. 3.6 How do natural monopolies differ from regular monopoly?

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