Question: i)Explain the key differences between perfect competition and monopolistic competition. (4 marks) ii)Assume firms in the short run are earnings above-normal profits. Explain what will

i)Explain the key differences between perfect competition and monopolistic competition.

(4 marks)

ii)Assume firms in the short run are earnings above-normal profits. Explain what will happen to these profits in the long run for the following markets:

1.Pure Monopoly

2.Oligopoly

3.Monopolistic competition

4.Perfect competition(6 marks)

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