1. List the characteristics of a monopolistic competitive industry. Explain the similarities and differences between a monopolistic competitive industry and a purely competitive industry. 2. Economists observe monopolistic competitive industries fail to achieve either productive efficiency or allocative efficiency in the long run. Explain the tradeoff between the inefficiencies of monopolistic competition and the benefits of more choices for consumers. 3. The four firm concentration ratio and the Herfindahl index are used by economists to measure concentration of economic power within an industry. Explain the benefits and limitations of these measures. 4. List the characteristics of an oligopolistic industry. 5. Fully explain the mutual interdependence among the few firms competing in an oligopoly. How does game theory and a payoff matrix demonstrate this mutual interdependence? 6. A high degree of advertising is a characteristic of both monopolistic competition and oligopoly. List and fully explain the economic benefits and economic costs of advertising