1. List and explain the characteristics of monopolistic competition.
2. Describe and explain a monopolist’s output decision.
3. Fill in the blanks: Each firm in an oligopoly has an incentive to _____ the other firms, so price fixing will be unsuccessful unless firms have some way of enforcing a _____ agreement.
4. Explain why a price-fixing cartel is difficult to maintain.
5. Fill in the blanks: Under monopolistic competition, the average cost of production is _____than the minimum, but there is also more product _____.
6. Put in plain words the concepts of adverse-selection and moral hazard