Market Structures: Competition and Monopoly

Define the conditions of perfect competition and derive that price equals marginal revenue for a price-taking firm.

Calculate the short-run profit-maximising output and profit for a perfectly competitive firm.

Determine the shut-down price for a competitive firm by comparing price to minimum average variable cost.

Calculate the long-run equilibrium price and output in a perfectly competitive market with free entry and exit.

Define monopoly and identify sources of barriers to entry that create market power.

Calculate the profit-maximising price, output, and profit for a monopolist given demand and cost functions.

Calculate the consumer surplus, producer surplus, and deadweight loss associated with a monopoly equilibrium.

Compare welfare and efficiency outcomes between perfect competition and monopoly using quantitative results.