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1. How does the product in a monopolistic competition compare with the product in a competitive...

1. How does the product in a monopolistic competition compare with the product in a competitive market?

2. How does the seller’s demand curve in a monopolistic competition compare with the seller’s demand curve in competition?

3. Why will an monopolistic competitive firm only lose some of its customers, but not all when it raises its price?

4. What feature is the “hallmark” in monopolistic competition?

5. What short-run profit maximizing rule do monopolistic competitive firms follow?

6. If economic profit is being earned in a monopolistic competitive market, what is happening to that market?
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