Microeconomic Principles

Objective 111.5.2-06: Compare and contrast characteristics of competitive and monopolistic markets.

Given:

Markets for given goods or services can be characterized as competitive or monopolistic in nature. Such categorization will often have discernible impacts on supplies of the goods or services, as well as their prices.

Task:

Write an essay (suggested length of 2–4 pages) in which you do the following:

A.  Describe a competitive market.

1.  Identify at least two characteristics of a competitive market.

2.  Describe the structure of a competitive market.

a.  Describe how this impacts the supply of goods and services.

b.  Describe what effect this has on the price of goods.

B.  Describe a monopolistic market.

1.  Identify at least two characteristics of a monopolistic market.

2.  Describe the structure of a monopolistic market.

a.  Describe how this impacts the supply of goods and services.

b.  Describe what effect this has on the price of goods.

C.  Compare and contrast the identified characteristics of competitive and monopolistic markets.

D.  Include all in-text citations and references in APA format