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EnglandEconomicsQuick questions

Microeconomics: Business economics and market structures

Quick questions on Perfect competition and monopolistic competition - Eduqas A-Level Economics (A520)

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Explain why a perfectly competitive firm faces a perfectly elastic demand curve. [4 marks]
What is q2?
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Explain what is meant by excess capacity in monopolistic competition. [4 marks]

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