Monopsony
1. Briefly describe the conditions for monopsony.
2. Show that L (quantity of labor) is lower and PL is higher than in the perfectly competitive labor market.
Monopolistic Competition
1. Explain monopolistic competition. Include in your explanation the characteristics that determine the degree of monopolistic competition.
2. Discuss Khalid's proposed business in terms of a competitive market and in terms of a monopolistic competitive market. Which type of market structure (competitive or monopolistic competitive) might he hope develops? Why? Does that development depend on him? Explain.