Briefly discuss the assumptions of each of these four models and give examples of each
There are four market models: perfect competition, monopolistic competition, oligopoly and monopoly. Briefly discuss the assumptions of each of these four models and give examples of each. Explain the long run economic profit earned by each of the four. Explain how the concept of economic profit might help explain the rationale for the government’s granting of monopolies to those firms that protect their product with a patent.
Any company’s growth and profitability is dependent on a number of factors which includes whether other like-minded firms can enter into the same market and compete with it. Other firms’ entry into the market would definitely mean reduced sales, low economic profits……………………….