Based on the assigned readings, what is your understanding of perfect competition and monopoly? What the main characteristic of each market structure?
After evaluating the characteristic of perfect competition and monopoly, which market structure do you believe is close to the hotel industry in the U.S.?
Address each of the following based on your knowledge of how firms operate in different markets:
Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut down?
In your post consider using the concepts: Total Cost, Fixed Cost, Variable Cost, Average Cost, Average Variable Cost, Average Fixed Cost, Marginal Cost, Economic profit, Economic loss, Shutdown point.
