MBAE-103: Managerial Economics – Unit 9

MBAE-103: Managerial Economics – Unit 9

Objectives: describe the characteristics of pure/perfect competition and pure monopoly; identify the equilibrium conditions for a firm and the industry in a perfectly competitive situation; examine price-output decisions under pure monopoly; and analyse the relevance of pure/perfect competition and pure monopoly.

Materials:
The relevant material is available here.

Questions:

1. Vegetable market is an example, closest to the pure competition. Discuss.
2. Suppose a small locality has a single grocery store selling multiple products.
   a. Is it a monopoly?
   b. If yes, then give arguments in support of your answer.
3. Discuss the relevance of perfect competition and monopoly in the present context.