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.











Answers to Chapter 25 Homework Questions Table of Contents
Go to Chapter 25 Class Discussion Questions Economics Free Stuff