Understanding Market Structures

Market Structure is the one of the important elements to understand how market will function determine the behavior of firms in the market and the outcome that will be produced by the market. In economics term, market structure is the number, size, kind and distribution of buyers and sellers. Market Structure comprise of four types of markets namely; perfect competition, monopoly, oligopoly and monopolistic competition. Keeping in view the four types of markets, answer the following questions.

QUESTIONS:

1. Highlight main similarities and dissimilarities in ALL market structures?

{CLO: AR1}

1. In perfect competition and monopoly, Profit is maximized at that level of output (Q) where MC = MR, if this is so what is difference between both market structures?                                                                                 {CLO: AR1}
2. How output and prices are determined in Perfect Competition and Monopoly?

{CLO: AR1}

1. Product Differentiation, Price Discrimination and Cartels Formation are the main characteristics of which market structure; explain briefly? {CLO: AR1}
2. If the government announces to impose custom duty on the raw material being imported by the industry; how it will affect the output and prices in both perfect competition and monopoly market structures.                        {CLO:RC1}

Good Luck!