Problem: Which of the following industries would you classify as an oligopoly? Which would you classify as monopolistically competitive? Explain your answer. If you are not sure, what information do you need to know to decide?
a. Athletic shoes
b. Restaurants
c. Watches
d. Aircraft
e. Ice cream
Problem 1) How does a firm in an oligopoly market maximize profits in the short term and the long term? When answering these questions, include MC=MR where it applies.
Problem 2) How does a firm in a monopolistic competition market maximize profits in the long term and the short term? When answering these questions, include MC=MR where it applies.