Principles of Microeconomics

1. Can you name five examples of perfectly competitive markets? Why or why not?

2. Many firms in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?

3. Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?

4. How is monopoly different from perfect competition?

5. What legal mechanisms protect intellectual property?

6. In what sense is a natural monopoly “natural”?

7. Are Monopolies needed and are they fair?