Question 1
People all over the world are fighting over COVID-19. In response to prevent infection, the WHO has advised the public to follow protocols such as:
ü Wash hands regularly
ü Maintain at least 1-metre distance
ü Stay home if you are unwell.
ü Practice physical distancing by avoiding unnecessary travel and staying away from large groups of people.
As many of us struggle to stay safe; the firms face challenges to remain in the market. Base on the type of market you have learned in the class (Perfect competition, Monopoly, and monopolistic), with the help of graphs, you are expected to discuss in detail:
- The problems faced by each of the firms in these markets (Perfect competition, Monopoly and monopolistic).
- Critically analyze which type of the market (Perfect competition, Monopoly or monopolistic) has the opportunity for a firm to sustain during the pandemic.
Question 2
With your own example, discuss in detail with the help of graphs the transition of a firm from perfect competition to monopolistic.
Sample Solution