In perfectly competitive market structure, a competitive firm has the given price as a price-taker and,...

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In perfectly competitive market structure, a competitive firm has the given price as a price-taker and, therefore, its price is equal to its MR shown on the same demand curve as the perfectly elastic demand curve. On the other hand, a monopoly firm has a downward sloping demand curve and its equilibrium price is always larger than MR (P>MR). Briefly explain why? Use both equation and diagram. 2. Define and explain the concept of natural monopoly and give the conditions under which natural monopoly exits with real-world examples of natural monopoly. 3. Briefly explain the concept of price discrimination under monopoly and the conditions under which monopoly practices price discrimination. In your explanation, give examples of three different types of price discrimination and the effects of the discriminatory practices on consumer welfare. 4. Why are the Anti-Trust Laws are important to control the behavior of monopoly pricing? Also, why does the government also protect some monopolies under paten Laws? Give examples on both sides. 5. Is the Google search engine a monopoly in the digital internet search industry? Why or why not? In perfectly competitive market structure, a competitive firm has the given price as a price-taker and, therefore, its price is equal to its MR shown on the same demand curve as the perfectly elastic demand curve. On the other hand, a monopoly firm has a downward sloping demand curve and its equilibrium price is always larger than MR (P>MR). Briefly explain why? Use both equation and diagram. 2. Define and explain the concept of natural monopoly and give the conditions under which natural monopoly exits with real-world examples of natural monopoly. 3. Briefly explain the concept of price discrimination under monopoly and the conditions under which monopoly practices price discrimination. In your explanation, give examples of three different types of price discrimination and the effects of the discriminatory practices on consumer welfare. 4. Why are the Anti-Trust Laws are important to control the behavior of monopoly pricing? Also, why does the government also protect some monopolies under paten Laws? Give examples on both sides. 5. Is the Google search engine a monopoly in the digital internet search industry? Why or why not?

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1In a perfectly competitive market a firm is a pricetaker meaning it has no control over the market price and must accept the prevailing price The demand curve faced by a perfectly competitive firm is ... View the full answer