Answer Happy

1. Explain with diagram why an oligopolist (with few competitors) pays more attention to what its competitors are doing than a producer in a competitive market (with many competitors )does. 10 2. If you decide to open up a business under which market structure you would like to open and why, justify with diagram. (please write in your own words , do not copy paste from google I will verify it ). You may choose any market structure with rational explanation. 1 page answer limit, not more than 1 page less than one page is also acceptable. 10 3. The equations for the demand curve and the marginal revenue curve are given as follows: P= 100- MR = 100 - 20, Suppose the monopolist has constant marginal costs of production given by MC = 20 and total costs given by TC = 200 + 1000. Using this information and the information above on the graph mark: • The monopolist's quantity Q. The monopolist's price P. Draw the MC curve label on the diagram. Profit maximization condition: MR = MC, Using this you may proceed to find the quantity and after you find the quantity you may find the price.