ECO 101 ASSIGNMENT 2
Assignment 2: The Theory of the Firm, Labor Markets, and Imperfect Information
Write a three to four (3-4) page paper in which you:
1. Discuss what is monopolistic about monopolistic competition and the difference between perfect competition and monopolistic competition.
2. Movie theaters charge differing prices to adults, children, and students; additionally, most theatres charge lower prices for afternoon showings. Discuss this pricing strategy and how it can maximize profits for the movie theater.
3. When you apply for an insurance policy, such as life insurance or health insurance, the insurance company will require you to get a physical examination. The results of the physical exam are shared with the insurance company. Explain why insurance companies may require applicants to receive a physical exam using the concept of adverse selection.
4. Include three (3) external peer-reviewed sources to support your position.
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