ECO 201 SNHU Monopolies and Monopolistic Competition Discussion

• Price Discrimination: Module Six

External Learning Tool

• 6-2      Simulation Discussion: Monopolies and Monopolistic Competition

             Discussion Topic

Top of Form

Bottom of Form

NOTE THAT A CUSTOM RUBRIC IS USED FOR THIS DISCUSSION.

A monopoly is a firm that is a sole seller in a market. Monopolies can decide to set different prices for different consumers through price discrimination. In monopolistic competition, there are many firms that sell products that are similar but not identical.

First, play the simulation game Price Discrimination in the MindTap environment. In this discussion, you will share your experiences playing that game. Your work in this discussion will directly support your success on the course project.

In your initial post, include the image of your simulation report in your response. See the How to Submit a Simulation Report Image document for more information. Then, address the following questions:

• Explain       which types of market inefficiencies derive from monopolies.       Use examples from the textbook to support your claims.
• Describe       the types of inefficiencies that derive from monopolistic       competition. Use examples from the textbook to support your claims.
• How       are monopolies and monopolistic competitive firms profitable?       Use examples from the textbook to support your analysis.

In your responses, comment on at least two posts from your peers by providing examples from the news of monopolies and firms in monopolistic competition markets. Compare and contrast the two types of markets.