Review sheet 4

Review sheet 4 - 10. What types of externalities arise...

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ECON 2000 Fall 2007 Review Sheet 4 1. What is monopolistic competition? What are the main features of a monopolistically competitive market? 2. What are the similarities between monopolistic competition and perfect competition? What are the differences? 3. What are the similarities between monopolistic competition and perfect competition? What are the differences? 4. What happens under monopolistic competition in the short-run? 5. What happens under monopolistic competition in the long run? 6. Why do firms make zero economic profits in monopolistic competition in the long run? 7. Why is there excess capacity in monopolistic competition? 8. What is the notion of markup pricing? Does this cause deadweight loss? 9. Why is it hard to regulate a monopolistically competitive industry?
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Unformatted text preview: 10. What types of externalities arise under monopolistic competition? 11. Is advertising good or bad? What are some arguments in favor of and against advertising? 12. Is creating brand names god or bad? What are some arguments in favor of and against this phenomenon? 13. What is asymmetric information? 14. What are hidden actions? What are hidden attributes? 15. What is moral hazard? 16. What are principal-agent problems? What are some ways to deal with them? 17. What is adverse selection? What are some ways to deal with it? 18. What is screening? 19. What is signaling? Additional chapters covered since Exam 3: Chapter 17 and part of Chapter 22 titled Asymmetric Information...
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Review sheet 4 - 10. What types of externalities arise...

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