Unit 5 Assignment: Perfectly Competitive and Monopoly Firms
In this Assignment, you will calculate total cost, total revenue, and total profit/loss. Based on the computed results, you will determine the optimal quantity of output that maximizes profit under a perfectly competitive market. Moreover, you will evaluate the antitrust laws and merger guidelines based on market shares of firms to prevent a monopoly and promote competition in the economy.
Instructions: This Assignment requires a combination of short paragraph answers and computations.Answer all of the following questions in this document. You are required to follow proper APA format. Read the Criteria section below for more information before you begin this Assignment.
In this Assignment, you will be assessed on the following outcome:
GEL-7.02: Apply ethical reasoning to ethical issues within yourfield of study.
References (add references in APA format in the space below)
Directions for Submitting your Assignment
Complete your Assignment in this Word document. Submit your Assignment by the end of Unit 5 to theUnit 5 AssignmentDropbox. Make sure to save a copy of your work and be sure to confirm that your file uploaded correctly.
|Unit 5 Assignment||Points Possible||Points Earned|
|Content and Analysis|
Explained how the demand curve faced by a perfectly competitive firm differs from the market demand curve in a perfectly competitive market.
Explained how the profit maximization condition for a monopoly differs from that for a perfectly competitive firm.
|Explained how this difference impacted efficiency under each market structure.||5|
a. Computed the Herfindahl-Hirschman Index (HHI) market concentration rules that guide mergers between companies to prevent monopoly creation and promotes competition among firms.
|Indicted the merger of which companies will be highly concentratedbased on the market shares of the companies in the table.||4|
|Explained what ethical rules will be affected based on U.S. antitrust laws and merger guidelines in regard to a highly concentrated market.||4|
|b. Explained if the Department of Justice and the Federal Trade Commission would approve a merger between any two of the first three companieslisted in the table based U.S. merger guidelines and antitrust laws.||4|
|c. Indicated if this market has barriers to entry, and if yes, what the market barriers might be.||4|
|Writing style, grammar, and APA format.||5|