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In Monopolistic Competition, unlike Pure Competition, it is possible to have an Economic profit (Big Fat Profit) and keep up that profit in the long-run.

In Monopolistic Competition, unlike Pure Competition, it is possible to have an Economic profit ("Big Fat Profit") and keep up that profit in the long-run. Part A What difference or differences between Monopolistic Competition and Pure Competition allow this to happen? Explain how and why these differences allow for sustained Economic Profits in some cases of Monopolistic Competition (for example Tabasco Pepper Sauce or Tylenol Pain Reliever or Rolex Watches). What asset or property does a company with sustained Economic Profit usually have? Type your answers and explanation here: PART B How would you put a value on that asset or property (referred to in Part A)? I am not looking for specific numbers and calculations, but a discussion of how you would go about solving the problem Please read this question again before answering. Type your answer and explanation here: Page

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