1)Briefly describe why monopolistic competition is less efficient than perfect competition

1)Briefly describe why monopolistic competition is less efficient than perfect competition.

2. What is the one advantage that consumers get with monopolistic competition over

perfect competition?

3. Firms spend a great deal of money on labeling, product attributes, and marketing in monopolistic competition and oligopoly, to try to make their product appear as special and unique as possible. This is known as

4. The following firms are all the firms in the industry, listed in order of sales.

Firm A                   18,000                                                                   Firm E                    2,500

Firm B                   14,000                                                                   Firm F                    2,000

Firm C                     7,000                                                                   Firm G                   1,600

Firm D                     3,700                                                                   Firm H                   1,200

Find the concentration ratio.  Is this firm in monopolistic competition or a less competitive market?

5. Find the Q*, ATC, Profit per Unit and Total Profit for the below firm. (Don’t worry if you have to estimate).

6. In the long run briefly describe what will happen in this market.