Please type up solutions where possible

Question 5 (40 marks) (a) 8 marks Distinguish between a perfectly competitive market structure and a monopoly outlining the main characteristics of each type of market structure. (b) 16 marks Competitive firms may decide to shut down in the long run or to exit the industry in the short run. True or False? Illustrate and explain your answer. (c) 16marks Draw the demand, marginal revenue and marginal cost curves for a monopolist. Show the profit-maximising level of output, the profit-maximising price and the deadweight loss. Explain the shape of the demand curve and the marginal revenue curve