short microeconomic assignment

Principles of Microeconomics Assignment 6

Due 10/21/15

1. Consider the behavior of a monopolist compared to that of a competitive firm in an identical

market. Which of the firms has a larger price? Economic profit? Market share? In which

market are more things produced? (8 points)

2. Why is a monopolists output smaller than the competitive output? Name one way that the

government could ensure that a monopoly produced the efficient quantity. (8 points)

3. What makes a monopolistically competitive firm different than a monopolist? (4 points)