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What is a cartel? Are cartels legal in the United States?
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When does a monopoly exist? What is the pricing rule for a monopoly?
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Illustrate the dead weight loss of a monopoly.
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What is characterized by a natural monopoly?
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Why is breaking up a natural monopoly a bad idea?
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When the government regulates monopolies, where is price usually set?
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Illustrate X-inefficiency. Why is this concept important?
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What does dynamic efficiency measure? What is the implication of dynamic efficiency for monopolies?
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What are the defining characteristics of monopolistic competition?
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Explain the three key differences between oligopoly and monopolistic competition.
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Define the four-firm concentration ratio. Why are concentration ratios so important in studying market structure?
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Discuss the concepts of strategic interaction and mutual interdependence.
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What can we say about the difference between monopolistic competition and perfect competition?
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Discuss the relationship between product differentiation and nonprice competition.
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Identify four sources of product differentiation.
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From the economist’s point of view, product differentiation in general and advertising in particular have what two goals?
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For what two reasons is monopolistic competition sometimes called noncollusive oligopoly?
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What will profits be for monopolistic competition in the short and long run?
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Illustrate the short and long run implications of monopolistic competition for market performance.
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Some economists argue that monopolistic competition leads to both excessive advertising and needless brand proliferation. Why?
