Critically evaluate and explain: a. In monopolistically competitive industries, economic
Critically evaluate and explain:
a. In monopolistically competitive industries, economic profits are competed away in the long run; hence, there is no valid reason to criticize the performance and efficiency of such industries.
b. In the long run, monopolistic competition leads to a monopolistic price but not to monopolistic profits.
6. Why do oligopolies exist? List five or six oligopolists whose products you own or regularly purchase. What distinguishes oligopoly from monopolistic competition?