Understanding The Economics Of Business

1 1200 words total. 3 APA cited references and reference list. No plagiarism!

In a narrative essay demonstrate your understanding of market structures and business costs by:

Identifying the two critical questions a firm must answer and identify the main economic objective of every firm.
Describing the characteristics of a perfectly competitive market as well as the economic efficiency that is attained in the long run.
Identifying a firm with monopoly power and explain the barriers to entry that help give that firm monopoly power.
Discussing the potential negative impact of the existence of a monopoly.
Identifying examples of price discrimination and the conditions necessary for its occurrence.
Completing the table below and answering the following questions.
How much output will the firm choose to produce?

Explain why the firm would choose this level of output.

Sample Solution