Economics 19th Edition by Stanley Brue, Cambell McConnell, Campbell McConnell, Sean Masaki Flynn, Sean Flynn

Exercise 1

How does monopolistic competition differ from pure com­petition in its basic characteristics From pure monopoly Explain fully what product differentiation may involve. Ex­plain how the entry of firms into, its industry affects the de­mand curve facing a monopolistic competitor and how that, in turn, affects its economic profit.