1. How will managers of a monopolistically competitive firm decide on the optimal level of production?
2. You recently noted that a national sports apparel company (in a monopolistically competitive market) hired celebrity professional athletes and signed exclusive contracts with some athletic departments of major universities. Why would the apparel company engage in such behavior?
3. True, False Uncertain and Explain:"Happy hour" pricing by bars and restaurants (i.e., lower prices atthe close of the business day) is not a logical outcome.The increase in demand for food and beveragesaround 5:00 p.m. should actually result inhigherprices.