Monopolistically competitive industry could become oligopoly

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Reference no: EM131392071

1. Discuss under what circumstances a monopolistically competitive industry could become an oligopoly, could become a monopoly, could become purely competitive.

2. Describe how an employer in a purely competitive labor market determines its profit maximizing wage rate and level of employment.

3. Discuss why and under what conditions a purely competitive industry allocates resources optimally.

Reference no: EM131392071

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