1. Which market structures represent industries where a firm has little or no control

over price? Which market structures represent industries where a firm may have

considerable control over price? Which then are self-regulating industries? Which

may require government regulation?

2. Explain how easy entry and exit will result in economic profits of zero in the long

run. Which markets have easy entry and exit?

3. The long run result of pure competition is that the price=minATC=MC. Explain

the importance of this result and why the government looks favorably in most

cases on competition.

4. List the barriers to entry and give a short description of how the barrier creates the

monopoly.

5. Which barrier is considered a natural result of the industry's structure? Which are

considered the result of artificial barriers? When might monopoly be preferable to

competition?

6. Draw the graph from the lecture video which shows monopoly versus

competition. This graph assumes economies of scale are not a barrier. In other

words competition can get to the same long run low costs as monopoly. In words

say what are the effects of monopoly on price, output, and efficiency when

compared to competition?