Product markets Revision Questions and Answers

1. State four reasons why the government should control activities on monopoly
2. The following diagram shows how price and output is determined under monopolistic competition

Name the curves:
3. The diagram below represents the short-run equilibrium of a firm in monopolistic competition.
Label the curves and show the best output and price on the graph


State four circumstances under which the phenomenon exhibited above can be experienced in a market structure
5. State four sources of Monopoly power
6. The diagram below relate to a market structure

i) Name the market structure represented in the diagram shown above
ii) Name the curves marked
7. Give four reasons why market research is important to a trader

1. Explain five characteristic of a monopolistic market.
2. By use of a diagram, explain how price and output are determined in a collusive oligopoly (centralized cartel) market situation
3. Highlight five differences between perfect competition and monopolistic competition
4. Using a well labeled diagram, explain how a monopolist enjoy a supernormal profit in both short and long run
5. Highlight five distinctions between perfect competition and monopolistic firms
6. a) With the aid of a diagram, explain how a firm under monopolistic competition is at equilibrium in the short run
b) With the aid of a diagram, explain the difference between perfect competition and monopoly revenue curves

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