How is monopolistic competition like perfect competition? How is it like monopoly?
What will be an ideal response?
Monopolistic competition is like perfect competition in that there are many buyers and sellers and it is easy for firms to enter and exit the industry. But it is like monopoly in that firms face downward sloping demand curves. The demand curves slope down because the product is not homogeneous, so the product of one firm is not a perfect substitute for the product of another firm.
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The final settlement of the United States v. Microsoft case, in part:
A. requires that Microsoft provide technical information to competing companies so they can develop software programs that work as well with Windows as Microsoft's own products. B. broke up Microsoft into two competing firms. C. found Microsoft not guilty of violating the Sherman Act. D. forced Microsoft to sell off its major applications programs such as Word and PowerPoint.
The natural rate of unemployment:
A. Means that the economy will always operate at that rate B. Means that the economy will always realize its potential output C. Is equal to the total of frictional and structural unemployment D. Is a fixed unemployment rate that does not change over time