Course Objectives for Chapter 13: Monopolistic Competition: The Competitive Model in a More Realistic Setting

 

Students should be able to:

       Explain why a monopolistically competitive firm has a downward-sloping demand curve.

       Explain how a monopolistically competitive firm decides the quantity to produce and the price to charge.

       Analyze the situation of a monopolistically competitive firm in the long run.

       Compare the efficiency of monopolistic competition and perfect competition.

       Define marketing and explain how firms use it to differentiate their products.

       Identify the key factors that determine a firm's profitability.