Monopoly Versus Perfect Competition

Macro & Micro economics

Please pick any topic (read the question)

Write a two to three (2-3) page paper in which you:

1. Identify a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-4 (please see below).

2. In the first two (2) paragraphs, identify at least four (4) key points that the article highlights.

3. In the next three to five (3-5) paragraphs, apply two (2) of the following economic concepts (supply and demand, market structures, elasticity, and costs of production) to the key points that you highlighted in Question 2.

4. In your concluding paragraph, state whether you agree or disagree with the author’s comments. Provide a rationale for the response.

5. Use at least three (3) quality resources in this assignment with one (1) being your article.

Y

The specific course learning outcomes associated with this assignment are:

• Apply the underlying principles of economics and the economic way of thinking to assess market issues and make business decisions.

• Analyze the dynamics of supply and demand to anticipate market equilibrium.

• Analyze the elasticity of demand and supply and its importance, and the effect of taxes or other public policies

• Describe the impact of various forms of competition on business operations with emphasis on perfect competition.

• Use technology and information resources to research issues in principles of economics.

• Write clearly and concisely about principles of economics using proper writing mechanics.

CONCEPTS TO BE USED FOR THE ABOVE QUESTION

Week 2 Checklist

Preparation

• Reading(s)

o Chapter 3: Demand, Supply, and Market Equilibrium Click here for PowerPoint

o Chapter 4: Elasticity: A Measure of Responsiveness Click here for PowerPoint

• e-Activity

o Use the Internet to research a recent event that caused the demand for a product or service to change. Be prepared to discuss.

Activities

• Lecture: Supply and Demand

o Topic 1: Distinguishing Demand and Quantities Demanded

o Topic 2: Distinguishing Supply and Quantities Supplied

o Topic 3: Effects of Changes in Supply and Demand

• Video – What Drives the Market: Supply and Demand

• Interactive Flashcards

• Discussion 1: Demand and Supply

o Discuss one recent price change that you have noticed while visiting your local supermarket. Determine whether or not the price change that you identified was a result of a change in either supply or demand.

o Based on your response to the first part of this discussion, identify what may have caused the shift in either supply or demand.

• Discussion 2: Elasticity

o Identify two elastic and two inelastic goods that you have purchased in the last month.

o Using the determinants of elasticity, explain why each good you selected is elastic or inelastic.

Week 3 Checklist

Preparation

Reading(s)

• Chapter 5: Production Technology and Cost Click here for PowerPoint

• Chapter 6: Perfect Competition Click here for PowerPoints Click here for PowerPoint

Activities

• Lecture

o Lecture 1: Costs of Productions

? Topic 1: Output and Costs in the Short Run

? Topic 2: Deriving Long-Run Average Cost

? Topic 3: Firm Profit Maximization Decisions

o CourseConnect Lesson 8: Perfect Competition

? Topic 1: Defining Perfectly Competitive Markets

? Topic 2: Output, Price, and Profits in the Short Run

? Topic 3: Efficiency of Perfect Competition

• Videos – Government Should Leave Farm Business

• Interactive Flash Cards

• Discussion 1: Production Costs

o You are the owner of a fast food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast food restaurant, and explain the changes to each of these costs, given the increased demand.

o Using the fast food restaurant context in the first part of this discussion, state two methods that take advantage of the increased demand while minimizing costs. Explain two (2) advantages and disadvantages for each method that you have chosen. Provide support for your response.

• Discussion 2: Perfect Competition

o Examine a perfectly competitive firm that you have recently purchased a product from, focusing specifically on how it relates to the characteristics of the market.

o Imagine that you are a manager of the perfectly competitive firm that you examined in the first part of this discussion. Identify two challenges of raising the price for a product when other competitors are selling the same type of product for a lower price.

Week 4 Checklist

Preparation

Reading(s)

• Chapter 7: Monopoly and Price Discrimination Click here for PowerPoint

• Chapter 8: Market Entry, Monopolistic Competition, and Oligopoly Click here for PowerPoint

e-Activity

• Read the CNN Money article titled “Does Apple have a Monopoly,” dated February 16, 2011, located at . Be prepared to discuss.

Activities

• Lecture – Different Market Structures

o Topic 1 – Monopoly Versus Perfect Competition

o Topic 2 – Monopoly Behavior

o Topic 3 – Firm Behavior in an Oligopoly

• Videos

o Video: Optometrists as Monopolists

o Video: Tradeoffs to High-Priced Cancer Drugs

o Video: What is a Monopoly?

o Video: Cash for Trash

o Video: No Frills Grocery Shopping

o Video: Skechers

• Interactive Flash Cards (MyEconLab for the course textbook)

• Discussion 1: Monopoly

o Identify a company in your local area that you would classify as a monopoly. Explain why you classified the company as a monopoly, and state how the company relates to at least two (2) characteristics of that particular market.

o Discuss one advantage and one disadvantage of having the government regulate monopolies. Provide an example in your response.

• Discussion 2: Market Entry and Monopolistic Competition

o From the e-Activity article, explain your position on whether or not Apple is stifling competition and monopolizing the tablet market. Examine the type of market structure within which Apple operates. Support your answer by relating to each of the characteristics described in Chapter 8 of your textbook.

o Based on the characteristics of the referenced in the first part of this discussion, determine two to three (2-3) ways in which potential competition would affect Apple’s ability to gain its share of the market. Provide support for your response.

Last Updated on July 4, 2019 by Essay Pro