1.Market Structure

a.Graph a comparison of the short-run and long-run profits, price, quantity, MR and MC of Monopoly and a PC firm. Which type of firm is more efficient and why?

b.Graph the short-run and long-run equilibrium of a Monopolistically Competitive firm. Are they efficient? Why or why not?

c.What is the market structure? Give an example and the characteristics of each type of structure.

d.Assuming that there are only 2 cell phone companies, Apple and Samsung, what is the (Nash) (Equilibrium) or price that each company in the following matrix first number listed in bold is the profit for Delta and the second number listed that is in italics is the profit for Continental.

e.Can Apple and Samsung Collude to increase their profits? Why or why not?

Samsung

$999

$1099

$1199

Apple

$999

$13000

$22000

$16000

$19000

$20000

$16000

$1099

$12000

$18000

$15000

$15000

$18000

$13000

$1199

$9000

$14000

$13000

$12000

$16000

$10000