What are the key characteristics of monopolistic competition

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A. What are the key characteristics of monopolistic competition?
B. If in the short-run, firms in a particular industry experience profits that exceed a normal economic profit, what signal does this send to firms outside the industry? If firms choose to enter or exit the industry, do they do so in the short-run or the long-run? Why?
C. What is the relationship between a firm's attempt to distinguish or differentiate its product from competitors and price elasticity of demand?
D. Compare an industry operating under conditions of monopolistic competition with an industry operating under conditions of perfect competition as it relates to price, output levels, and efficiency.
E. Why is "Brand Name" important when a firm is operating under conditions of monopolistic competition? Is there a cost associated with the variety provided by firms operating under conditions of monopolistic competition? Explain.

Reference no: EM13200850

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