Q 1) explain the short-run break-even price as well as shut-down price for a competitive firm. (1 point)
Q 2) Why is the level of output where marginal revenue equals marginal cost called as the profit-maiximizing output under either perfect competition or monopoly ? prove it in a logical way. (1 point)
Q 3) Describe the shape of short run supply curve in perfect competition. (1 point)
Q 4) Do you agree that companies under perfect competition as well as monopoly are making profits in the long run? If yes, why? If not, why not? (1 point)
Q 5) Do you agree that companies under perfect competition as well as monopoly are enjoying productive efficiency and allocative efficiency? what is condition for productive efficiency and allocative efficiency? ( 1 point)
Q 6) Compare the individual demand curve and marginal revenue curve for company under perfect competition as well as monopoly. ( 1 point)
Your comment has to be more than five(5) sentences for each question based on researched facts and logical analysis to earn the full credit.
Threaded discussion
Case study of Monopoly
Microsoft(MSFT) has been accused of violating the Anti-trust law time to time. MSFT had the legal problem with European Community(EC).
Q1)Do you think Monopoly business practice is so bad for the general public’s welfare? why? or why not? Explain based on cost and benefit analysis of social welfare.(0.5 point)
Q2)Do you think FAANG companies are Monopoly? FAANG are Facebook, Apple, Amazon, Neflix and Google. Do you think Government should regulate and break upthese FAANG companies? (0.5 point)
Q3)Would you give us another notorious example like Monopoly case in the past or present (such as Standard Oil, Morgan House, OPEC with high energy price, lately case of INTEL)? Your Monopoly example should be based on high concentration of market share and high abnormal profits.(0.5 point)
Q4) Is the current Anti-trust law outdated ? why? For example, Sherman Act of 1890 has only 769 words.(0.5 point)
Q5) if so, what reform is necessary for the current anti-trust law? (0.5 point)
Sample Solution
