Write a short paper exploring the theoretical differences between monopolistic competition and monopoly and their relevance for real-life firms. Intro

Overview

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 differentiated (similar but not identical). In this short paper, you will demonstrate what you have learned about the similarities and the differences between monopolistic competition and monopolies.

Directions

Using the template provided in the What to Submit section, write a short paper exploring the theoretical differences between monopolistic competition and monopoly and their relevance for real-life firms.

1. Introduction: Define monopolistic competition and monopolistic market structures.
2. Economic Theory: Identify at least three key features that monopolistic competition and monopolies have in common and three key features that are different. Use the following questions to guide you:
   • How many sellers are there in the market?
   • Are the products differentiated or identical? Explain.
   • Are there barriers to entry and exit? Explain.
   • How is the profit maximizing quantity determined?
   • How is the price determined in each market type?
   • Is there short run and long run profit? Explain.
3. Application: Illustrate the practical application of the economic theory regarding monopolies and monopolistic competition you discussed in the prior section of your paper.
   1. Examples: Research examples of firms that operate under each market structure and explain why you chose each example.
   2. Market Structures and Firm Behavior: Analyze how each market structure's characteristics align with your example firms' behavior. Provide details to support your claims.

Support your claims with examples from your research or from the textbook cited in APA format.

What to Submit

Use the Module Six Short Paper Template to create your short paper and submit it for grading. Sources should be cited according to APA style.

Supporting Materials

The following resource support your work on this assignment:

Resource: APA Style Basics
Use this resource to support your in-line citations and full references in the References section of your template.

Module Six Short Paper Rubric

CriteriaProficient (100%)Needs Improvement (55%)Not Evident (0%)ValueIntroductionDefines monopolistic competition and monopolistic market structuresShows progress toward proficiency, but with errors or omissionsDoes not attempt criterion10Economic TheoryIdentifies at least three key features that monopolistic competition and monopolies have in common and three features that are differentShows progress toward proficiency, but with errors or omissionsDoes not attempt criterion30Application: ExamplesIdentifies examples of firms that operate under each market structure and explains why each was chosenShows progress toward proficiency, but with errors or omissionsDoes not attempt criterion20Application: Market Structures and Firm BehaviorAnalyzes how each market structure’s characteristics aligns with the behavior of the example firmsShows progress toward proficiency, but with errors or omissionsDoes not attempt criterion30Clear CommunicationConsistently and effectively communicates in an organized way to a specific audienceShows progress towards proficiency, but communication is inconsistent or ineffective in a way that negatively impacts understandingShows no evidence of consistent, effective, or organized communication5Citations and AttributionsUses citations for ideas requiring attribution, with consistent minor errorsUses citations for ideas requiring attribution, with major errorsDoes not use citations for ideas requiring attribution5Total:100%  Plagerism Free