Economics

The question below is intended to give you an opportunity to think about course content that is related to the Unit 5 Complete assignment but also how economics is related to your own personal life.

It is recommended that you answer the question below, after you have viewed the Unit 5 Attend videos and completed the Read assignment for Unit 5 which covers chapters 23 and 24 in the course e-book, Economics (Arnold, 2019). You are also advised to read any relevant articles that can be found in the Course Materials link as well as do some research on the topic using the OCLS and the Internet.

Please answer all parts of the questions and number and letter your answers.

Firms compete in different types of market structures. In the real world, most markets are either monopolistically competitive or oligopolistic, and a few markets have a monopoly. Perfect competition is rare because no market has all the characteristics of a perfectly competitive market as described by the theory of perfect competition. 

1. (a) What is a monopoly? Give an example.

    (b) How many firms are there in the Internet provider market?

         Is it easy or difficult for new firms to set up and compete in this industry? Explain.

    (c) How do firms in the Internet provider market compete?

2. Explain which firm is likely to face a more elastic demand curve: a monopoly or a pizza shop?