In what ways is a monopolistically competitive firm likely to be less efficient than one under perfect competition?
Answer to relevant QuestionsAre there any shops in your area that stay open later than others? If so, does this affect the prices they charge? Why do you think this is?Would it be possible for firms to calculate their maximum-profit output if they did not use marginal cost and marginal revenue concepts?Is mark-up pricing likely to benefit consumers?Distinguish between proportional, progressive and regressive taxation. Could a progressive tax have a constant marginal rate?Should all investment be subject to a social cost–benefit appraisal?
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