1) In the short run what is the similarity in relation to profits in a monopoly and a monopolistic competitive market? Is there a difference in the long run? Explain

2) Explain why monopolies such as the lone movie theater in a town practice price discrimination by having two sets of prices. Use a graph(s) to illustrate your answer

3) Describe the difference between the specialist, market maker and electronic system for trading stocks. What are the benefits and detriments of each system? How is the difference between the real estate market and the financial markets reflected in transaction costs? Explain why this difference occurs.

4) Explain why there is advertising in a monopolistically competitive market and not in other markets. Include a graph. What are the economic advantages and disadvantages of advertising?

5) Explain the differences in the characteristics of a monopolistic competitive market from a monopoly and a perfectly competitive market.

6) A firm in a competitive market is losing money in the short run. What factors do they need to take into consideration when deciding whether to stay in business or close? What does the term sunk cost refer to?

7) In a competitive market in the long run there is equilibrium at the intersection of the P/MR/AR curve, the MC curve and the ATC curve. Explain why this occurs. Does the firm make a profit at this point?

8) What is the difference between economic and accounting profit? Why is it significant on the study of economics?

9) When a company goes from a private corporation to a public corporation it does an IPO. What does IPO stand for? What are the primary and secondary markets for stocks?

10) Monopolies are considered illegal in the U.S. so why do we have natural monopolies and government created monopolies? Explain each of these types of monopolies and why do they exist.