Use your completed Venn diagram to answer this question: 

What are the characteristics of monopolistic competition and oligopoly? 

2. Extension You want to buy a new pair of jeans. The store offers several brands and styles. Each one looks different. Prices and colors vary. How will vou decide which jeans to buy? Key Terms and Main Ideas 

3. What four conditions define monopolistic competition? 

4. How does differentiation help monopolistically competitive firms sell their products? 

5. Explain what happens during a price war. 

6. How do economists determine whether or not a market is an oligopoly? 

7. How would price fixing and collusion help producers? Critical Thinking 

8. Apply (a) Name four kinds of non-price competition. (b) Which example would you use to promote the following products: a new brand of bottled water, in-home computer repair, and protein bars? Explain your reasoning. 

9. Extend (a) What are the advantages of a monopolistically competitive market for consumers? (b) What are some of the disadvantages? 

10. Interpret (a) In what ways does the government regulate oligopolies? (b) Why do you think the government has imposed these regulations

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1 Characteristics of Monopolistic Competition and Oligopoly Monopolistic Competition Many firms Numerous firms compete in the market Product differentiation Products are similar but not identical allo... View the full answer