(b) Based on the following conditions compare pure competition, pure monopoly, monopolistic competition, and oligopoly: (i) Flexibility of prices (ii) Expenditures on advertising and sales promotion. (iii) Efficiency in allocation of resources.

(b) Based on the following conditions compare pure competition, pure monopoly, monopolistic competition, and oligopoly: (i) Flexibility of prices (ii) Expenditures on advertising and sales promotion. (iii) Efficiency in allocation of resources.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 9SQ

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Question

(b) Based on the following conditions compare pure competition, pure monopoly, monopolistic competition, and oligopoly:

(i) Flexibility of prices

(ii) Expenditures on advertising and sales promotion.

(iii) Efficiency in allocation of resources.

Definition Definition Form of market structure in which there are a large number of sellers of a particular product, with each seller selling somewhat differentiated but close substitutes to the product sold by other sellers. Features of monopolistic competition include: Large number of buyers and sellers Differentiated products Free entry and exit of the firms in the market

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