problem 1) List the characteristics of monopolistic competition.

problem 2) describe how product differentiation occurs in similar products.

problem 3) Determine the profit maximizing price and output level for a monopolistic competitor in the short run when given cost and demand data.

problem 4) describe why a monopolistic competitor will realize only normal profit in the long run.

problem 5) Identify the reasons for excess capacity in monopolistic competition.

problem 6) describe how product differentiation may offset these inefficiencies.

problem 7) Describe the characteristics of an oligopolistic industry.

problem 8) Differentiate between homogeneous and differentiated oligopolies.

problem 9) Identify and describe the most important causes of oligopoly.

problem 10) Describe and compare the concentration ratio and the Herfindahl index as ways to measure market dominance in an industry.

problem 11) Use a profit-payoffs matrix (game theory) to describe the mutual interdependence of two rival firms and why oligopolists might tempt to cheat on a collusive agreement.

problem 12) Identify three possible models of oligopolistic price-output behavior.

problem 13) Use the kinked demand curve theory to describe why prices tend to be inflexible.

problem 14) describe the major advantages of collusion for oligopolistic producers.

problem 15) List the obstacles to collusion behavior.

problem 16) describe price leadership as a form of tacit collusion.

problem 17) describe why oligopolies may prefer nonprice competition over price competition.

problem 18) List the positive and negative effects of advertising.

problem 19) describe why some economists assert that oligopoly is less desirable than pure monopoly.

problem 20) describe the three ways that the power of olipogolists may be diminished.