Directions: Analyze the data for Scenarios 1 and 2. Write a 3-4 paragraph response. Respond to another student by asking a follow up question, adding additional information they may have missed, or by critiquing their analysis. There is an optional extra credit scenario at the bottom.

Compare and Contrast Scenarios 1 and 2. Include the following: long run profits, entry and exits of firms within the market, the firm's ability to choose prices, elasticity of demand, barriers to entry, and actual industries that represents each market structure.

Initial Post Due: Wednesday, April 8th

Responses Due: Friday, April 10th

*Blank initial posts to see other student answers will earn zero points for the initial post

Scenario 1: There are many firms in the industry that sell an undifferentiated product.

PRINTABLE POWERPOINT OF SCENARIO 1

Scenario 2: One firm has more than 90% market share and sells an undifferentiated product.

PRINTABLE POWERPOINT OF SCENARIO 2

Extra Credit: Explain how free markets for vaccinations create a positive externality. How can the government intervene to solve for this externality?

Scenario 1: There are many firms in the industry that sell an undifferentiated product. Pefectly Competitive Firm $140.00 $120.00 MCMR $100,00 $80.00 w $60.00 AFC $50.00 $25.00 $16.67 $12.50 $10.00 $8.33 $7.14 $6.25 $5.56 $5.00 AVC $50.00 $50.00 $40.00 $37.50 $38.00 $40.00 $42.86 $47.50 $52.22 $59.00 ATC $100.00 $75.00 $56.67 $50.00 $48.00 $48.33 $50.00 $53.75 $57.78 $64.00 540.00 Co wa $20.00 $30.00 $40.00 $50.00 $60.00 $80.00 $90.00 $120.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $20.00 $0.00 1 2 9 10 3 AFC 4 5 AVC ATC 6 7 8 MC MR PRINTABLE POWERPOINT OF SCENARIO 1 D Scenario 2: One firm has more than 90% market share and sells an undifferentiated product. Total Total Cost AVC ATC MC Revenue $500.00 $5,000.00 NA NA $270.00 $0.00 100 $450.00 $32,000.00 $270.00 $320.00 $180.00 $45,000.00 200 $400.00 $50,000.00 $225.00 $250.00 $120.00 $80,000.00 $350.00 $62,000.00 $190.00 $206.67 $180.00 $105,000.00 400 $300.00 $80,000.00 $187.50 $200.00 $220.00 $120,000.00 500 $250.00 $102,000.00 $194.00 $204.00 $330.00 $125,000.00 600 $200.00 $135,000.00 $216.67 $225.00 $400.00 $120,000.00 700 $150.00 $175,000.00 $242.86 $250.00 $450.00 $105,000.00 800 $100.00 $220,000.00 $268.75 $275.00 $455.00 $80,000.00 900 $50.00 $265,500.00 $289.44 $295.00 $545.00 $45,000.00 Market for Widgets (Monopoly) 1000 $0.00 $320,000.00 $315.00 $320.00 $0.00 300 $500.00 $400.00 $300.00 $200.00 $100.00 $0.00 300 400 500 600 200 0 0 0 000 Scenario 1: There are many firms in the industry that sell an undifferentiated product. Pefectly Competitive Firm $140.00 $120.00 MCMR $100,00 $80.00 w $60.00 AFC $50.00 $25.00 $16.67 $12.50 $10.00 $8.33 $7.14 $6.25 $5.56 $5.00 AVC $50.00 $50.00 $40.00 $37.50 $38.00 $40.00 $42.86 $47.50 $52.22 $59.00 ATC $100.00 $75.00 $56.67 $50.00 $48.00 $48.33 $50.00 $53.75 $57.78 $64.00 540.00 Co wa $20.00 $30.00 $40.00 $50.00 $60.00 $80.00 $90.00 $120.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $20.00 $0.00 1 2 9 10 3 AFC 4 5 AVC ATC 6 7 8 MC MR PRINTABLE POWERPOINT OF SCENARIO 1 D Scenario 2: One firm has more than 90% market share and sells an undifferentiated product. Total Total Cost AVC ATC MC Revenue $500.00 $5,000.00 NA NA $270.00 $0.00 100 $450.00 $32,000.00 $270.00 $320.00 $180.00 $45,000.00 200 $400.00 $50,000.00 $225.00 $250.00 $120.00 $80,000.00 $350.00 $62,000.00 $190.00 $206.67 $180.00 $105,000.00 400 $300.00 $80,000.00 $187.50 $200.00 $220.00 $120,000.00 500 $250.00 $102,000.00 $194.00 $204.00 $330.00 $125,000.00 600 $200.00 $135,000.00 $216.67 $225.00 $400.00 $120,000.00 700 $150.00 $175,000.00 $242.86 $250.00 $450.00 $105,000.00 800 $100.00 $220,000.00 $268.75 $275.00 $455.00 $80,000.00 900 $50.00 $265,500.00 $289.44 $295.00 $545.00 $45,000.00 Market for Widgets (Monopoly) 1000 $0.00 $320,000.00 $315.00 $320.00 $0.00 300 $500.00 $400.00 $300.00 $200.00 $100.00 $0.00 300 400 500 600 200 0 0 0 000