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After reading this chapter, you should be able to:
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Define what is meant by a monopolistically competitive market structure and
explain its characteristics relative to competitive and monopolistic market
structures.
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Define the role that product differentiation plays in monopolistically
competitive markets.
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Further discuss the characteristics of monopolistically competitive firms and
implications these characteristics have on the demand and marginal revenue
curves faced by such firms.
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Compare the equilibrium conditions (and their implied results) between monopolistically
competitive and perfectly competitive firms.
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Discuss the short-run, profit maximizing, equilibrium position of
monopolistically competitive firms using graphs or price, revenue, and cost
data.
- Differentiate
the short-run AND LONG RUN equilibrium situations of
monopolistically competitive firms from perfectly competitive firms.
(This is very similar to #35 above.)
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Repeat Learning Objectives 35 and 36.
- Explain
the various ways monopolistically competitive firms try to
differentiate their product or service from their competitors.
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Discuss various marketing strategies of monopolistically competitive firms and
the types of goods and services that can be most effectively differentiated.
(This Learning Objective is very similar to #38.)
- Discuss
"information product" industries as examples of
monopolistically competitive industries.
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