Explain different market structures (pure competition, monopoly, monopolistic competition, oligopoly) and the implication of their characteristics on the efficient allocation of scarce resources as well as the potential for market failure and(course objective 5)Discuss how firms attempt to optimize their objectives in response to price signals under a variety of market structures in the short run and the long run.

Specifically, you will be able to:

• Summarize how the perfect competition model works when demand shifts right and profits are generated.
• Summarize how the perfect competition model works when demand shifts left and losses are generated.
• Explain how allocation efficiency and production efficiency are described in the perfect competition model framework.

1A.Using lecture section 8.3 -"Example 1 - when a market has an increase in demand and creates profits".

Use the example given,but change it from "corn" to "sugar cane", and explain what happens in a perfectly competitive market when the demand for sugar cane increases.Draw the diagrams and take it step by step.

2A.Using lecture section 8.3-"Example 2 - when a market has a decrease in demand and creates losses".

Use the example given,but change it from "corn" to "green peas", and explain what happens in a perfectly competitive market when the demand for green peas decreases.Draw the diagrams and take it step by step.

3B.Using your textbook section 8.3"Entry and exit decisions in the long run".

Write a brief definition of long-run equilibrium, as is explained in your textbook, .

4B.Using your textbook section 8.4 "Efficiency in Perfectly Competitive Markets"

Explain production efficiency and allocation efficiency as described in the perfect competition model.