Explain how price and output are determined for a firm in a monopolistically competitive market, in both the short run and the long run

There is a v simple formula for answering these 'explain' questionsStart with definitions - what is monopolistic competition? -10% of marksThen to score full marks, you must include:2 well-reasoned chains of analysis - this is effectively answering the question in a logical fashion >50% at least 1 diagram - used to illustrate your analysis, not replace it! - 10%at least 1 good example to anchor you analysis to reality - 10%if there is an extract you MUST use something from it (facts/example etc.) - 10%a final conclusion is always a nice touch - just a sentence is sufficient

WH

Related Economics A Level answers

All answers ▸

Why is the marginal cost curve shaped the way it is?


Explain the effect on economic growth if a government increases income tax (ceteris paribus).


Evaluate the view that all firms are aiming to maximise profits


What are economies of scale and scope?