1. Give an example for each of the four firm types and briefly explain why they belong to that category (don't use the textbook examples).

The four types are:

Perfect competition: Crop farming, because all crops grow and produce what the consumers need in an equilibrium.

Monopolistic competition: Fast-food, each fast-food location have their own market power that allow consumers to have varieties in taste, location, price, and their own brand. Some fast-food compete with each other.

Oligopoly: Smartphone market, Apple vs Samsung, both of these companies compete against each other on brand, price, specs, and captivity.

Monopoly: Facebook, it one of the largest social media app.

1. Which of the firm types are the most common in real life?

Monopolistic competition and Oligopoly

1. What bad outcomes does market power result in relative to perfect competition?

Instability, increased price, fewer choices for the consumers, and inequality

1. Can public policy eliminate market power? What can it do to help?

The government can add regulation and limitation, separating a bigger market with a smaller one which can allow them to have an equality in market power, and protection for the consumers.

Ch 15

1. What is the difference between economic profit and accounting profit? Which is more important for decision-making?

Accounting is more focused on total revenue and total income while Economic is more on opporntity cost.

1. Do perfectly competitive firms earn profits in the long-run? What about monopolistically competitive firms? What about monopolies?

Perfect competitive firms would possibly earn the less profits because there can be other smaller markets that the consumers would enjoy more than the others. Monopolistic competition market may or may not struggle because of the fact that other market may attract more consumers and other may receive less.

A monopoly market is a single market which also means they have full control and are able to gain many profits over time compared to any other competition.

1. List the different kinds of barrier to entry. Pick one and describe a real-life example of that barrier.

Loyalty from consumers, reputation from how people judge, researching ad taking advantage, and regulations.

Regulations, it can limit what you and the market can do which can prevent the owner from being able to participate in the market or create limitation that prevent it altogether.