Question 1

     In the long run, firms in a perfect competition market structure will have zero economic profits.

Question 2

     The market structure that will be a price maker and have barriers to entry is the monopoly market structure.

Question 3

     Four-firm concentration ratio = Major four firm’s share / Total Sales

                                                     = (3,000 + 2,500 + 2,500 + 2,000) / 14,000

                                                     = 71.43%

     The four-firm concentration ratio in this case is 71.43%, which is less than the 90% plus threshold of a good indication of an oligopoly, as a result, I would not classify this market as an oligopoly.

Question 4

     One common aspect among all is that all firms have profit-maximization as their primary objective. Moreover, they deal with a large buyer base, and in the long run, almost all have zero economic profit.

Question 5

     In the long run, the market structures that will likely have their average cost curve just sit on top of their demand curve are oligopolies and monopolistic competition. This takes place in the long term due to firms deciding to alter supply which in turn causes the demand curve to shift. This implies that each market structure enjoys a special market power. When analyzing the differences between market structures, oligopolies tend to have a smaller number of firms, more profits enjoyed per firm, and a demand that is considered inelastic.

Question 6

     Monopoly, monopolistic competitive markets, and oligopolies are market structures that are likely to cause a net loss to societal welfare. However, since a monopoly tends to set the highest price with the lowest production quantity, it is likely to lead to the highest net loss to societal welfare.