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- Is the outcome in a monopolistically competitive market desirable from the standpoint of society? Can the government improve on the market outcome?Why do monopolistically competitive firms spend funds for the product development and advertising when this practice only adds to the firm’s costs?what are some pricing tactics used by companies? What form of price discriminations might a company use?
- Imagine a scenario in which the fashion industry is suffering from monopolistic price gouging and a dwindling demandWhy is monopolistic competition the most common market structure?If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Why?
