. No firm should earn an economic profit.
2. Monopolists always charge the highest price possible and earn short run economic profits.
3. The defining characteristic of oligopoly is that each firm is mutually interdependent.
4. A firm should shut down in the short run if price is less than average fixed costs.
5. A price discriminating monopolist charges the same price to everyone. (Be sure to point out that a price discriminating monopolist must be the only seller in the market.)
6. There is no reason for a firm in a monopolistically competitive market to advertise and advertising has nothing to do with promoting non-price barriers.
I need a explaintion on each topic . This is due at 11am friday. This is for 4 points and I need them all.
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