a. Give three characteristics of a perfectly competitive market. [3 marks] b. List and explain three types...

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Economics

a. Give three characteristics of a perfectly competitive market.[3 marks]
b. List and explain three types of barriers to entry that may beused in a monopoly. [3 marks]
c. For a monopolist, why is marginal revenue less than price forevery level of output except the first? [4 marks]
d. Give the conditions which should exist for pricediscrimination? [3 marks]
e. Draw a diagram to show the long run equilibrium condition ofthe perfectly competitive firm [4 marks] Â Â

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A There are following characteristics There are free entry and exit They produce homogeneous product There are many buyers and sellers They are price taker ie They have to charge what market price is B 1 Patent and copyright 2 Economies of scale 3monopoly resources Explanation 1 Patent and copyright This is useful to create monopoly as no one can sell the product which has copyright or See Answer

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