1. What are the most important difference3s between perfectly competitive markets and monopolistically competitive markets? Give two examples of products sold in perfectly competitive markets and two examples of products sold in monopolistically competitive markets. 2. Why doesn't a monopolistically competitive firm produce where P = MC, as a perfectly competitive firm does? 3. What affect does the entry of new firms have on the economic profit of existing firms? 4. What is the difference between zero accounting profit and zero economic profit? 5. What are the differences between the long-run equilibrium of a perfectly competitive firm and the long-run equilibrium of a monopolistically competitive firm?

6. Define marketing. Is marketing just another name for advertising?

7. How might a monopolistically competitive firm continually earn an economic profit?