ECONOMIC

ONE PAGE WRITTING ASSIGNMENT 

 
1- Please comment on the following statement: “A monopolistically competitive firm will still produce in the short run even if its demand curve is below its average variable cost curve simply because each firm maintains a degree of market power.”
2- Explain what should happen to the demand curve of monopolistically competitive firms as the consumers observe a decrease in the degree of product differentiation on one hand and an increase in the number of rival firms on the other. Does that impact the structure of the industry? 
Suggestion and warning: To do a good job on this assignment all you need is a good understanding of product markets in the textbook. Please be aware that copy and paste from other sources without comprehending the concepts usually lead to “contradictory” sentences and the result will be huge loss of points. By spending “QUALITY” time on chapters that cover different product markets ( Midterm exams 2 & 3 cover this material) one should be able to do a good job here. 
Please meet the deadline for submitting this assignment. No late submission will be allowed. All assignments should be sent thru Canvas ONLY (no email assignment please).   
Good Luck to all of you!

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