Chapter 12 For your own study define the following terms: monopolistic competition. oligopoly, cartel Questions: 01. A monopolistic competitor has some elements of monopoly and some elements of competition. How does entry of additional monopolistic competitors into a market affect economic prots? 02. The textbook states, "Thus, a monopolistically competitive industry will produce too small a quantity of a good and charge a higher price for it than would a perfectly competitive industry." Explain how this is means that monopolistic competition is not productively efcient? Q3. Does product differentiation in monopoly competition make us better or worse off? Why? Q4. If you were an oligopolist and from only an economic standpoint would you want to act as a cartel? Why?' Chapter 13 Q1. Define antitrust laws. Q2. Why is it in the interest of consumers to enforce antitrust laws? (Your answer should include how competition helps increase consumer surplus.)