Microeconomics- 2026 Market Structures| QUESTIONS AND ANSWERS| ALREADY GRADED A+!!!

Microeconomics- 2026 Market Structures| QUESTIONS

AND ANSWERS| ALREADY GRADED A+!!!




The four types of market stuctures - ANSWER-1. Perfect

Competition

and within the area of Imperfect Competition

2. Monopoly

3. Monopolistic Competition

4. Oligarchy




In a perfectly competitive industry many firms sell... -

ANSWER-one homogeneous product. Because there are

few barriers in this type of industry, firms enter and exit

, easily , and since industry supply and demand determine

what price will prevail, firms are price takers.




Some characteristics of a perfect competitive industry are:

- ANSWER-a) perfect competitors will not achieve long-run

profits. They may experience profits(or loss) in the short-

run, but the industry adjusts because its so easy to enter

and exit.

b) price will always equal marginal revenue, and the

average revenue. In the long-run, the MR curve will

interest the MC curve at the minimum of the ATC curve.

Consequently, when ATC equals MR there are no

economic profits. When ATC is at its minimum, there's

productive efficiency. When Price=MC there's allocative

efficiency.