1. Based on your understanding market structure theory, answer the

following questions :

a. Provide an example of companies involved in either OLIGOPOLISTIC or MONOPOLY

market structure. Support and explain your answer.

b. Explain how companies in this market structure will maximize their profit? Provide

graphical illustration on how this company can produce its best output. What happen to

the economic profit in the short run and in the long run.

c. What is your opinion about the competitor increasing or decreasing price on the same

product in this kind of market structure? Explain your opinion according to economic

theory.

d. Explain the business idea you want to be developing after your MBA study. In which

market structure your business is in? What are the characteristics? Who are the

competitors? How does your company compete against the competitors?

2. You own four firms that produce different products. The following table

summarizes the conditions in each firm. After calculating the missing numbers for each firm,

make one of the following four decisions regarding operations in each firm, and explain why

a particular decision is reached.

(a) continue producing the same output level

(b) shut down

(c) increase output

(d) decrease output

see the picture:

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