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Economics Model Answers Nine - 2013 (view source)

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:1) Monopolistic Competition 2) Perfect Competition 3) Monopoly

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:Explained by a student (CM): It is Monopolistic Competition because the hair dresser offers a differentiated product that is not a perfect substitute. 2. It is Perfect Competition because the prices are driven very low because there are probably a lot of substitutes and rival firms. 3. It is a Monopoly because the prices are able to increase substantially due to the lack of perfect substitutes and rival firms.

4. List how monopolies can be established.

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