1. What are the four different types of market structures?
2. In two or more sentences provide at least 3 or more characteristics that separate a perfectly competitive market structure from a monopolistic market structure?
3. Which type of market structure has differentiated goods and services?
4. Identify at least one market structure that is predominant in the United States?
5. At what point do all four market structures maximize profits?
6. In one to two sentences explain, how a monopolistic market structure determines its optimal price and quantity?
7. Which type of market structure faces a perfectly elastic demand curve?
8. In two or more sentences, explain the difference between consumer surplus and producer surplus?
9. Given the graph below explain which triangle color represents consumer surplus and which triangle color represents producer surplus.
Values to construct the graph above are given in the table below:
Price Quantity Supplied Quantity Demanded
30 30 0
28 25 5
26 20 10
24 15 15
22 10 20
20 5 25
18 0 30
10. Given the graph below, in one to two sentences, state whether consumer surplus will increase or decrease and state whether producer surplus will increase or decrease, if the price was increased from $24.00 to $28.00.
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