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Briefly explain any three key features of a Perfect Competitive and a Monopolistic market i. Show what happens to a monopoly fim operating in the long-run

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Monopolistic Competition

Section: Chapter Questions

Problem 2CQQ

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Question

1. Briefly explain any three key features of a Perfect Competitive and a Monopolistic market
i. Show what happens to a monopoly fim operating in the long-run

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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