(a) State two characteristics of monopolistic competition. (b) With the aid of diagram(s), explain why a firm in monopolistic competition is unable to earn ...

Question 1 Report

(a) State two characteristics of monopolistic competition.

(b) With the aid of diagram(s), explain why a firm in monopolistic competition is unable to earn abnormal profits in the long run.

(c) Differentiate between natural monopoly and legal monopoly.