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Saturday, 21 September 2013

Unit 3: Monopolistic Competition

In case you didn't get it through my amazing teaching....here is a short clip explaining the theory in more detail:



Related questions:

Minicab taxi firms are best described by the model of monopolistic competition. Which
of the following will be true for such firms in long-run equilibrium?

   Productive efficiency        Profit                            Product
A Yes                            Supernormal                     Homogenous
B No                             Normal                             Differentiated
C Yes                            Normal                             Homogenous
D No                             Supernormal                     Differentiated
E Yes                            Normal                              Differentiated

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