Question

Select an industry or firm. State its market structure (pure competition, monopoly, monopolistic, or oligopoly). Next, please define the characteristics of the industry or firm that support your selection of market structure. Lastly, describe and illustrate graphically the firm's profit maximizing behavior in particular MR=MC under the above-mentioned market structures or conditions.

In this written assignment, the quality of your writing and the application of APA format will be evaluated in addition to your content. Evaluation based on these criteria is designed to help you prepare your college projects, which must be well-written and follow APA guidelines. Each written assignment should contain a minimum of 300 words, but no more than 400 words. Make sure that you use correct spelling, grammar, and punctuation.

Answer 1

Industry - natural gas

market structure - monopoly

characterstics

1. single seller

- Monopolist is a single , it is the only firm in the industry with large number of buyers

2.no close substitutes of product sold

There are no close substitutes , product sold in not identical and has distinguishing features.

3.barriers of entry of new firms

New firms cannot enter the market , there is a restriction even when the firm is making abnormal profits

4. price markers

Monopolist controls and sets the price in the indutsry , since it is the sole supplier and has entire leverage of setting up the price

EQM condition MR=MC

Monopolist will continue to sell at the point , where profits are maximised . It HAPPens when marginal revenue curve intersects marginal cost curve.