Feature of the monopolistic competition


Question 1: Illustrate the meaning of oligopoly.

Question 2: Describe the inverse relationship between the price of a commodity and its demand.

Question 3: Illustrate the ‘law of supply’. What do you meant by the term assumption other things remaining similar on which the law is based?

Question 4: The price elasticity of supply of good X is half the price elasticity of supply of Good Y. A 10 percent increase in the price of good Y outcomes in a rise in its supply from 400 units to 520 units. Compute the percentage change in quantity supplied of good X when its price drops from Rs 10 to Rs 8 per unit.

Question 5: State the difference between explicit cost and implicit cost. Give an illustration of each.

Question 6: Describe the implication of product differentiation feature of the monopolistic competition.

Question 7: Describe the implication of the homogenous product feature of the perfect competition.

Question 8: Describe the effect of an increase in the prices of related goods on the demand for a good X.

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Microeconomics: Feature of the monopolistic competition
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