Topic 1

Think of a product or service that operates in a market that is most like a "perfect competition" market. Name the specific product or service and use the concepts of perfect competition to justify that it is a product or service in a perfect competition market. Specifically, are revenues maximized when marginal cost equals revenue? Explain.

Topic 2

Many people think that Facebook and Google are examples of monopolies. Pick one of the two and answer whether you think they are a monopoly. What are the characteristics that lead you to your conclusion? Who is the customer for their product or service and is the customer suffering in some fashion from the Company being or not being a monopoly? What actions should government regulation take based on your assessment of the existence of monopoly power?