Question

Monopolistic competition differs from perfect competition primarily because in monopolistic competition, entry into the industry is blocked. in monopolistic competition, there are relatively few barriers to entry. in monopolistic competition, firms can differentiate their products. in perfect competition, firms can differentiate their products.

Answer 1

Ans: In monopolistic competition , firms can differentiated their products.

Explanation:

Under monopolistic competition , firm produces differentiated products which have close substitutes. On the other hand , under perfect competition , firm produces homogeneous product.

Ans: production efficient and point A is not production efficient.

Explanation:

Any point on the production possibilities curve shows an efficient poduction point becuase at these points , resources are efficiently used. But any point inside the production possibilities curve shows an inefficient poduction point becuase at these points , resources are not efficiently used.

So point D is production efficient and point A is not production efficient.

Ans: a collusive aggrement

Ans: truck ; cars ; cars

Explanation:

In U.S , the opportunity cost of 1 truck = 80 /20 = 4 cars

In England , the opportunity cost of 1 truck = 60 /40 = 1.5 cars