Assignment:
Q1. Does the number of firms in an industry with constant marginal costs necessarily converge to infinity as the entry cost turns to zero? Explain.
Q2. Why are we interested in empirically estimating models of product differentiation? (After all, to understand the intensity of competition in the short run, we only need to know the Lerner index.)
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.