Mark Topic: Perfect and Monopolistic Competition (1) What type of Average and Marginal Cost structures of a firm can sustain Perfect Competition as well as Monopolistic Competition with representative consumer? Draw it in a diagram where the output of a firm is measured along the horizontal axis and all dollar items are measured along the vertical axis

Mark Topic: Perfect and Monopolistic Competition (1) What type of Average and Marginal Cost structures of a firm can sustain Perfect Competition as well as Monopolistic Competition with representative consumer? Draw it in a diagram where the output of a firm is measured along the horizontal axis and all dollar items are measured along the vertical axis. (2 marks) (ii) In the cost diagram in part (i) show the Perfectly Competitive long run equilibrium and the Monopolistically Competitive long run equilibrium points. You need to draw the firm's residual demand curve for the two market structures to show the two equilibrium points and use it to explain the difference between the long run equilibrium in these two markets. (4 marks) of 5