Question 17:

17 Consider the following costl data for a perfectly competitive producer to answer the questions given below it. 12 marks \fQ19 Important differences exist between perfect competition and monopoly markets. Show your understanding of these differences by listing the following terms under the particular type of market structure. Enter appropriate number only under the specic type of market. 5 marks 1 Very large number of buyers and sellers 2 No close substitutes 3 Downward sloping demand curve or AR curve 4 Horizontal demand curve 5 Upward sloping total revenue curve 6 Firm is a price maker 7 AR = MR = Price 8 Atomistic competition 9 Relatively large number of buyers 10 Patent rights 11 Freedom of entry and exit 12 Firm is a price taker