17 Monopolistic Competition

Photo of a salesman demonstrating a smartphone to a customer.

Which smartphone?

Chapter Checklist

When you have completed your study of this chapter, you will be able to

  1. 1 Describe and identify monopolistic competition.

  2. 2 Explain how a firm in monopolistic competition determines its output and price in the short run and the long run.

  3. 3 Explain why firms develop new and improved products and incur large advertising costs.

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