Many Windows PC assemblers seek to portray their machines as different from others through branding or other methods. As such, many consumers might prefer to purchase a machine from one company over the others at a given price.

(i) Which would be the right way to model competition in the Windows PC market?

Circle the correct alternative:

Competitive Selection

Monopolistic Competition

Cournot Oligopoly

Bertrand Oligopoly

(ii) With the new model of the PC market, which of these are present in the long-run? Circle the correct alternative:

Allocative inefficiency

Productive inefficiency

Both