Analyze the differences and similarities among firms for two different market structures: Monopoly and Monopolistic

Analyze the differences and similarities among firms for two different market structures: Monopoly and Monopolistic Competition. ~ e a. When comparing a Monopolistically Competitive firm to a Monopoly, we say that both firms possess market power. Market power means that both types of firms are "price- makers" that encounter the Law of Demand as they decide to price their products. ~ 1) How does a Monopolistically Competitive firm become a price-maker, instead of a price-taker? Why will a pure monopoly always be a "price-maker"? 2) What is the relationship between Product Price and Marginal Revenue at any given Q level for both monopolies and monopolistic competitors? Why?- b. A Monopoly has very high entry and exit barriers, and it also has considerable control over market relevant information. A Monopolistic Competitor faces a market with an easy flow of market information, along with easy-entry and easy-exit market conditions. ~ Taking into account these differences, explain how a Monopoly can potentially earn above-normal total economic profit for an indefinite amount of time into the future, whereas a monopolistic competitor can earn either above-normal or below-normal economic total profit in the short run, but is predicted to earn Zero (normal) total economic profit in the long run.~ c. In the long run, if high barriers prevent entry, a monopoly produces Q where $Price > $Marginal Cost and also $Price > Minimum Average Total Cost. How do these inequalities affect economic efficiency in the entire economy? ~ d. In the long run, after easy-entry and easy-exit have affected the long run market conditions for the entire industry, a monopolistic competitor produces Q where $Price > $Marginal Cost and also $Price = Average Total Cost (not minimum ATC). ~ 1) How do these end-results affect economic efficiency in the entire economy?~ 2) Why do some economists mention the effects of product differentiation as a positive influence on the consumer desire for variety, when discussing how monopolistic competition influences market performance?- Throughout your answer to this question, use graphs, completely labeled, to accompany your written analyses.~