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Homework Help: Solved 101945

I’m working on a Economics exercise and need support. 1. Consider the monopolistic competition market structure. What does it have in common with a pure monopoly market structure? What does it have in common with a perfectly competitive market structure? 2. Why do economists consider zero economic profit to be “normal”? (p. 339 #8) 3. Assume firms in the short run are earning above-normal profits. Explain what will happen to these profits in the long run for each of the four market types (pure monopoly, oligopoly, monopolistic competition, perfect competition). (p. 381 #2) 4. In the following list are a number of well-known companies and the products that they sell. Which of the four types of markets (pure monopoly, oligopoly, monopolistic competition, perfect competition) best characterizes the markets in which they compete? Explain why. a) McDonald’s- hamburgers b) ExxonMobil- gas c) Dell- personal computers d) Heinz- ketchup e) Proctor & Gamble- disposable diapers f) Starbucks- gourmet coffee g) Domino’s- pizza h) Intel- computer chip for the PC (p. 381 #9)

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