#4 assignment ; Total 10 point if you complete all five questions. Q1 ,2,3 , 4 , 5 have each 2 points.
Your answer to the homework has to be more than five(5) sentences for each question based on researched facts and logical analysis to earn the full credit.
Q 1) What is the price leadership model of Oligopoly pricing and what are its tactics?(2 points)
Q 2)” In monopolistically competitive markets, neither allocative nor productive efficiency is realized” explain.(2 points)
Q 3) Do you agree that companies under monopolistic competition can have a profit in the long run?
If yes, why? if no, why not? (2 points)
Q 4) Contrast and discuss the individual demand curve and marginal revenue curve among perfect competition, monopolistic competition and Monopoly. ( 2 points)
Q 5) “in Kinked Demand curve theory” , if a company increases its price, how do its competitors react to it? If a company cut its price, how do its competitors react to it? Can you explain the shape of Kinked Demand curve? (2 points)
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