Question: a.Define a price maker and explain why the demand curve of a monopoly is more inelastic than the demand curve of a monopolistic competitive firm.

a.Define a price maker and explain why the demand curve of a monopoly is more inelastic than the demand curve of a monopolistic competitive

firm.

b.Define normal profit and explain why making normal profit is a requirement for any firm who wishes to remain in business in the long run.

c.Why is a perfectly competitive market structure very unlikely to exist in the real world?

d.Why does the share market closely reflects a perfectly competitive market?

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