Answer each separately
300 words APA
Discussion Monopolistic Competition:
Suppose you manage a local grocery store, and you learn that
a very popular national grocery chain is about to open a store just a few miles
away. Use the model of monopolistic competition to analyze the impact of this
new store on the quantity of output your store should produce (Q) and the price
your store should charge (P). What will happen to your profits? Please show
graphically and explain your reasoning in detail. For example, how and why do
profits change? How can that be seen on the graph?
What could you do to defend your market share against the
Discussion Income Distribution:
How would you define income inequality? How is income
inequality measured? What has happened to income inequality in the United
States since the end of the Second World War in 1945? What evidence can you
provide to support your answer? What are the reasons for the changes in income
inequality since 1945.
Suggestion: Click here to visit the Web site for the
documentary film Inequality for All. The site enables you to rent or purchase
the film, if you choose. Or you can click on “Graphics Package” to download a
free copy of informative graphics from the film. Take a look at those.
Summarize what you learn, and share your thoughts.