1. Your company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run. Would you create an aggressive advertising campaign for your product?2. Why do firms in perfectly competitive markets not make any economic profit in the long run? Would be smart for a firm to lower its price in a perfectly competitive market? Explain.3. Is the monopolist a price taker. Explain.4. Is a monopolist allocatively efficient? Why or why not?5. Why are brand name pharmaceuticals much more expensive than generic ones?
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