To what extent are hairdressers a good example of firms operating under monopolistic competition?
Which of the following markets/industries are closest to the economists d definition of monopolistic competition - you may select more than one:
Independent electrical retailers
A coffee grower in Brazil
An estate agents
Draw separate diagrams to show a firm under monopolistic competition making supernormal profits in the short run and normal profits in the long run.
Evaluate monopolistic competition as a market structure.
A firm in long run equilibrium under monopolistic competition will exhibit:
Allocative but not productive efficiency
Productive but not allocative efficiency
Neither productive nor allocative efficiency
Both allocative and productive efficiency