Problem
1. Explain why, in the Bertrand model of oligopoly with differentiated products, a greater degree of product differentiation is likely to increase the markup between price and marginal cost.
2. What are the characteristics of a monopolistically competitive industry? Provide an example of a monopolistically competitive industry.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.