Describe three features of monopolistic competition that ...

[mspears3]

Describe three features of monopolistic competition that differentiate it from monopoly.
 
  What will be an ideal response?

Question 2

A student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days. This statement suggests that
 
  A) society should value good grades more highly than sleep because students can catch up on their sleep once final exams are over.
  B) there is a trade-off between studying and sleep.
  C) students are more concerned about good grades than good health.
  D) society should value sleep more highly than good grades.

[xMRAZ]

Answer to Question 1

First, firms in monopolistic competition cannot influence market price as greatly because they are small relative to the size of the market. Second, many good substitutes exist in a monopolistically competitive industry. Lastly, there are barriers to entry.

Answer to Question 2

B