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1. How does monopolistic competition differ from pure competition? From pure monopoly? Explain fully wat product differentiation entails.
2. Here is a production possibilities table for war goods and civilian goods
Production alternatives
Type of producion: A B C D E
Automobiles: 0 2 4 6 8
Rockets: 30 27 21 12 0
a. Show these data graphically. upon what specific assmptions is this production possiblities curve based?
b. If the economy is at point C, what is the cost of one more automobile? One more rocket? Explain how the production possibilities curve reflects the law of increasing opportunities costs
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Find out the Marginal Revenue and Marginal Cost
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