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1. Explain the difference between the demand curve...

1. Explain the difference between the demand curve facing a monopoly firm and the demand curve facing a perfectly competitive firm.
2. Which of the following is (are) most likely to be produced under conditions resembling perfect competition – automobiles, beer, corn, diamonds, and eggs. Defend your answer in economic terms.

3. Read the Case in Point “Competition in the Market for Generic Prescription Drugs” in Chapter 9. Why have generic drug companies been so successful? What economic and/or political conditions would cause a generic drug maker to go out of business?

4. Name one monopoly firm you deal with. What is the source of its monopoly power? Do you think it seeks to maximize its profits?

Case Assignment Expectations:

Use concepts from the modular background readings as well as any good quality resources you can find from the cyberlibrary or other internet search engines. Pleas be sure to cite all sources within the text and provide a reference list at the end of the paper.

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