This assignment is to illustrate a couple of points we learned in the three different market structures, i.e., perfect competition, monopoly, and monopolistic competition. This is a two-part assignment. The first part is for you to watch two video clips from the movie â€œYouâ€™ve Got Mailâ€ which is about the bookselling industry, where product differentiation matters. Write up your answers to the following questions (please answer question by question) and submit your answers by uploading your document on to Canvas.
While watching the video clips, please keep in mind that you are to discuss the following points:
- What are the differences among the monopolistic competition, competitive markets, and monopoly? Please use all the knowledge you learned from the previous modules to help you answer this question. You should also refer to the video as well.
- Is the bookselling a perfectly competitive industry? Briefly explain
- Can you identify barriers to entry from the video?
- How the sellers differentiate their products from their competitors as suggested by these video clips?