What are the characteristics of monopoly

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Reference no: EM133202891

Assignment:

DEFINITIONS.

Define any 10 terms. (10 points maximum each).

Model Elasticity

Parameter Net profit margin

Economies of scale Strategy

Diminishing returns Public good

Trigger strategy Private good

Multi- stage game Marginal Utility

Consumer surplus (demonstrate) Externality

Producer surplus (demonstrate) Oligopoly

Limit pricing

II. Essay Questions. Answer any three questions. Answer all parts of each question.

1. a) What is Imperfect Competition?

b) Develop a model demonstrating a possible result for one producer in the Short run.

c) What is the long run? Explain and demonstrate.

d) Is there a steady state equilibrium for any one producer?

2. a) What is Monopoly? What are the characteristics of monopoly? What is essential for a monopolist to exist?

b) Using graphical analysis, develop a model of Monopoly

What is the short run result? Demonstrate.

c) What becomes the dilemma for a monopolist? What may happen to the short-run efficient (market) result?

d) What is the long run in monopoly?

3. a) What is risk? Why does risk exist?

b) Explain:

Economic risk
Business risk
Market risk
Inflation risk Interest rate risk
Credit risk
Liquidity risk
Currency risk

c) How is probability related to risk?

Explain expected value, and construct an example.

d) Explain Standard deviation and variance.

4. a) What is meant by competitive strategy? Provide examples.

b) Give examples of non-price competition

d) What is Price discrimination? Explain

First degree discrimination

Second degree discrimination

Third degree discrimination

Under what circumstances can a firm engage in price discrimination? Give examples.

e) Does game theory serve to explain pricing behavior? Provide an example.

Reference no: EM133202891

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