Chapter Questions
Monopoly is a market structure, where there is a single seller of the good in the market with no close substitutes for the good.
If $E_{p}<1$, demand is elastic and $M R$ is positive.
Under monopolistic competition in the short run, the firm may earn supernormal profits.
The proportionate demand curve of the firm depicts the demand for the good of one firm assuming that the other firms in the group do not change the price of their good
In the long run a firm under monopolistic competition faces a no-economic profit no-loss situation.