1. Imagine an owner of a firm is thinking about raising prices. Describe the consequences of doing so as a monopolist, oligopolist, monopolistic competitor, and perfect competitor.
2. What are the key differences between monopolistic competition and perfect competition?
3. One of the concerns about Walmart's entry into the grocery business in the latter part of the 1990s was that it would set low prices, drive little stores out of business, and then raise prices to monopoly levels when it had no competition. Can you explain why it has not happened?