Q.1 Monopolistic competition shares some characteristics with a monopoly, and some other characteristics with Perfect competition. Explain using examples

Q.2 Fill in the table

Q.1 Monopolistic competition shares some characteristics with a monopoly, and some other characteristics with Perfect competition. Explain using examples. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . ..... Q.2 Fill in the table Do firms: Perfect Monopolistic Competition Competition Monopoly No Yes a) Make differentiated products? Yes/Unique b) Have higher average costs? Advertise? c) Pick Q so that MR = MC? d) Pick Q so that P = MC? e) Earn economic profits in the long-run f) Face a downward-sloping demand curve g) Have MR less than price? h) Face the entry of other firms? i) Exit in the long run if profits are less than zero