Complete the following assignment questions and submit by end of day Wednesday 11:59pm.See below questions 1,2,3.1. Answer all of the following questions in detail use your economics textbook to complete the following:

• How does the demand curve faced by a purely monopolistic seller differ from that confronting a purely competitive firm?
• Why does it differ? Of what significance is the difference?
• Why is the pure monopolist's demand curve not perfectly inelastic?

2. Assume that a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two with respect to

• (a) price
• (b) output
• (c) profits
• (d) allocation of resources
• (e) impact on income transfers

3. Since both monopolists and competitive firms follow the MC = MR rule in maximizing profits then:

• How do you account for the different results?
• Why might the costs of a purely competitive firm and those of a monopolist be different?
• What are the implications of such a cost difference?

Complete correctly and submit for credit.