Chapter 11 Monopolistic Competition and Oligopoly Assignment 1. What are the major features of monopolistic competition compared to pure competition monopoly? 2. Assume that the short-run cost and demand data given in the table below confronts a mor competitor selling a given product and engaged in a given amount of product promotion. Co marginal cost and marginal revenue of each unit of output and enter these figures in the table Total Marginal Quantity Marginal Output cost cost demanded Price revenue Profit 0 $ 50 XXXX 0 $60 XXXXX $ 1 80 $ - 55 $ 2 120 2 50 3 150 3 45 4 170 4 40 5 185 5 35 6 205 6 30 7 235 7 25 8 275 8 20 9 325 9 15 10 385 10 10 (a) At what output level and at what price will the firm produce in the short run? What will be profit? (b) What will happen to demand, price, and profit in the long run? How will the market achieve this