Discussion Question

In Chapters 6 and 8 you learn about different market structure and how these differences impact the ability of the firm to set prices and determine the quantity its offer to the market sale, despite the fact marginal analysis drives decision making that maximizes profits across markets.  These chapters give you a wide range of ideas that are critical throughout your study and beyond. 

Contrast the behavior and the abilities of the firm in competitive market versus that of a firm in a monopolistic market, or a oligopolistic market. To help you discuss this, consider examples of firms in different markets:  a) food vendors in midtown Manhattan, or vendors selling similar jewelry in a flea market; b) restaurants with different distinctions in midtown Manhattan, or c) firms selling named brand pharmaceuticals for specific diseases.  Identify in each case in which markets these firms compete and use the economic theories to make the comparisons /contrasts.