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BUECO5903 Business Economics-Exercising Tax

a)Assume that in long-run equilibrium the minimum point of the LRAC curve for a table manufacturer tables in $200 per table. Under conditions of monopolistic competition, will the long-run price of a table be above $200, equal to $200 or less than $200. Explain your answer.
 
b) What are of the characteristics of an oligopolistic market Give three examples of industries with oligopolistic firms in Australia. Justify your examples by relating them to the characteristics of oligopolistic firms.
c) What are the characteristics of a monopolistically competitive market Give three examples of industries with monopolistically competitive firms in Australia. Justify your examples by relating them to the characteristics of monopolistically competitive firms.
d) Assume that two firms make up a natural duopoly. What are the conditions which may make this occur Sketch the market demand curve and cost curves that describe the situation in this market and that prevent other firms from entering.

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