How do the characteristics of perfect competition and ...

[storky111]

How do the characteristics of perfect competition and monopolistic competition differ?
 
  What will be an ideal response?

Question 2

A firm is operating in its range of economies of scale and is on both its LRAC curve and its short-run ATC curve. At that level of output, the slope of its LRAC curve is
 
  A) zero and the slope of its ATC curve is zero.
  B) zero and the slope of its ATC curve is negative.
  C) negative and the slope of its ATC curve is zero.
  D) negative and the slope of its ATC curve is negative.

[nyrave]

Answer to Question 1

In monopolistic competition, the products sold are similar but differentiated, thereby enabling firms to compete on the basis of product development and marketing to further differentiate their products. In perfect competition the products are identical, thereby eliminating the opportunity for firms to compete by differentiating their product.

Answer to Question 2

D

[storky111]

Thank you

[nyrave]

Happy to help you