1) Explain the similarities and differences between monopolistically competitive markets, monopolies, and perfectly competitive markets. 2) Does the...

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Economics

1) Explain the similarities and differences betweenmonopolistically competitive markets, monopolies, and perfectlycompetitive markets.
2) Does the presence of asymmetric information in a marketjustify governmental intervention? Justify your answer usingeconomic principles.
3) Explain bargaining power, the factors that determine it, andits impact in determining the outcome of negotiations.

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1 Similarities between monopolistically competitive firms and perfectly competitive firms in many firms MRMC may be profitable or unprofitable in the short run but not profitable in the long run free entryexit in the long run and PAC in the long runwhile similarities between monopolies and competitive markets are PAR and MRMC Two Main differences between the monopolistically competitive and perfectly competitive firms firm are a In the long run the monopolistic competitve firms produces an output level which is below See Answer

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