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Micro Economics

Notes 14. Discuss whether you find the monopolistic competition in the following industry:

Hotels and restaurants, Health Spas, Hair dressing.
15. How is equilibrium of a firm under monopolistic competition affected, when fi rms are

competing only through price changes? Discuss with example.
16. Explain the role of advertising in monopolistic competition.

Answers: Self Assessment

1. True 2. False
3. True 4. False
5. False 6. False
7. False 8. True
9. True 10. False
11. False 12. insignifi cant

13. falling 14. higher
15. less 16. More

12.8 Further Readings

Books Dr. Atmanand, Managerial Economics, Excel Books.
Jeffrey M. Perloff, Microeconomics, Pearson Education.
Robert S. Pindyck, Microeconomics, Pearson Education.

Sampat Mukherjee, Microeconomics, Prentice Hall.

Online links http://ingrimayne.com/econ/International/MonoComp.html
http://faculty.lebow.drexel.edu/mccainr/top/prin/txt/Imch/MC1.html
http://www.peoi.org/Courses/mic/mic6.html
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=monopolis
tic+competition

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