1. Briefly discuss why increased competition can lead to increased efficiency in the market. Are the developers of "apps" for mobile devices (Android or iOS) competing in an almost perfectly competitive market? How are prices set for those apps? Will there be economic profits (losses) leading to more entry (exit) in this type of market? How can those developers continue to stay in the market in the long run?
2. Will firms in near or pure monopoly markets be always profitable? Give a few examples of how those firms are able to increase profits through price discrimination. Should government regulate "monopoly firms"? Give some examples. In your opinion, which type of pricing will improve outcomes: socially optimal or fair return pricing?
3. What are the key differences between monopolistically competitive firms and firms inperfect competition? Price differentiation is a kind of non-price competition. How will you differentiate your products and services from other competitors if you plan to start a business in any of the following markets: restaurants (food catering), clothing (fashion), hotels (accommodation), car rides (transportation).