Chapter 10 In the long run, the positive economic profits that the monopolistic competitor earns will attract a response either from existing firms in the industry or firms outside. As those firms capture the original firm's profit, what will happen to the original firm's profit-maximizing price and output levels? What is the relationship between product differentiation and monopolistic competition? How does a monopolistic competitor choose its profit-maximizing quantity of output and price? Does each individual in a prisoner's dilemma benefit more from cooperation or from pursuing self-interest? Explain briefly. What stops oligopolists from acting together as a monopolist and earning the highest possible level of profits? Chapter 11 What is the goal of antitrust policies? How do we measure a Herfindahl-Hirschman Index? What does a low measure mean about the extent of competition? If public utilities are a natural monopoly, what would be the danger in splitting them into a number of separate competing firms? Deregulation, like all changes in government policy, always has pluses and minuses. What do you think some of the minuses might be for airline deregulation