Tugas Pertemuan 2
DISCUSSION QUESTIONS
1. Why would a firm ever supply goods at a loss along a short-run marginal cost
curve?
2. List and explain the importance of the characteristics of a perfectly competitive
industry.
3. Why would a firm continue to operate in the long run if profits are zero?
4. Discuss the various sources of market power and explain how each can be
maintained despite the lure of higher than normal profits to potential competitors.
Note, in particular, sources that are (a) natural and (b) artificial. Does the
government ever contribute to artificial sources of monopoly power?
5. Evaluate the following statement: “Under conditions of imperfect competition,
market price is not determined by demand and supply.” What does it mean when
economists say “monopolists do not have supply curves?” Show your answer
graphically.