Answer each of these questions in no more than a few paragraphs

1. Describe as precisely as you can:
a) Some of the merits of perfect competition
b) Some of the impediments to achieving perfect competition
c) Some of the harms of imperfect competition

2. Why is the equality of price and marginal cost important?
a) How does imperfect competition lead to price exceeding marginal cost? Why is that a problem for society at-large?
b) What does the concentration of large sellers have to do with this?

3. Describe a few non-pricing strategies
a) Provide an example of a non-pricing strategy from your experience or reading outside of this course.

4. Define seller and buyer power and provide examples.
5. Describe two cases of imperfect competition in which regulation is desirable?
a) Extra credit: why is market regulation not generally desirable when competition is “perfect”?

6. Define (a) public good and (b) free rider. Why does the market’s incapacity to provide an optimal supply of public goods imply that the government must facilitate their provision or supply them directly? Provide an example.