1. Find three examples of monopolistic competition (four firm concentration ratios of 20 to 40 percent) at www.census.gov/epcd/www/concentration.html. Which characteristic of monopolistic competition described in the text are true for each example?
2. "In the long-run, there is no difference between monopolistic competition and perfect competition." Discuss this statement with respect to the following:
a) The price charged to consumers
b) The average total cost of production
c) The typical firm's profit in the long run.