Managerial Economics 1. Comparing the four models of market structures, cite the limitations/drawbacks of each.

Managerial Economics

1. Comparing the four models of market structures, cite the limitations/drawbacks of each.

2. Why does the interdependence of firms play a major role in oligopoly but not in the other markets?

3. Discuss the changes that happen from short run to long run in both competitive and monopolistically competitive markets. Explain how this will affect the strategic decision of the firm, particularly in monopolistic competition.

Q1Pure or perfect competition is rare in the real world, but the model is important because it helpsanalyze industries with characteristics similar to pure competition. This model provides a…

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