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ScotlandEconomicsQuick questions
Economic Markets: Structures and Intervention
Quick questions on Monopolistic competition and contestable markets: differentiation, excess capacity and entry threats - SQA Advanced Higher Economics
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?Show answer
Why does a firm in monopolistic competition earn only normal profit in the long run? [2 marks]
What is q2?Show answer
Explain what is meant by a "sunk cost" and why it affects contestability. [2 marks]
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