Question 1: Question requires complete understanding of interactions between production and profit maximization. Be careful with the IF-THEN statement.
If a competitive firm minimizes its cost of production subject to output, it then maximizes economic profit. True or false and explain in detail.
Question 2: In an oligopolistic market, firms pay close attention to the strategies of their rivals. In monopolistic competition, with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence. Why is there probably some rivalry in many monopolistically competitive markets?