Assignments for Microeconomics Chapter 6

A-6.1 List and explain the characteristics of monopolistic
competition. Use examples.

A-6.2 Study short run profits and losses of firms in monopolistic
competition and derive the long run equilibrium for a single
firm. Give reasons why that equilibrium may never be reached.

A-6.3 Explain what is nonprice competition and show that it is
essential in monopolistic competition.

A-6.4 Present arguments in favor and against advertising.

A-6.5 Evaluate monopolistic competition in terms of efficiency.
Compare to perfect competition and monopoly.