An economist says Huawei, Samsung and Sony operate in a monopolistic competitive industry. a. Write down the characteristics of monopolistic competition. b. Huawei has just introduced the latest version of mobile phone at the surprise of Samsung and Sony. Draw Huawei's short-run profit maximising diagram and indicate the profit maximising output market price. c. Explain how Huawei selected its profit maximising output. d. Explain why Huawei's profit maximising is not efficient. 

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Monopolistic Competition and Huaweis Pricing Strategy a Characteristics of Monopolistic Competition Many Firms There are a large number of sellers in ... View the full answer