Chapter 25 Monopolistic Competition Homework Questions

1. Draw a graph depicting a monopolistically competitive firm operating at a profit. 
    Other things being equal, what will happen to this profit? Why? (see figure 77A on graphs page 8 and section IIIC on page 77)

 

 

 

 

 

 

2. Contrast the economic efficiency of a purely competitive firm with one operating in a monopolistically competitive market.
    Contrast figures 73B and 77B of graphs page 8.

 

 

 

 

 

 

 

 

 

 

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