2. Suppose that A Cleaner World invents a new type of laundry detergent that has an ingredient that stops stains from setting into clothes. If the laundry detergent market is monopolistically competitive, explain what will happen to the price of its product in the short run. What will happen in the long run?
3. Explain the following statement “If the amount of product differentiation in a monopolistically competitive industry is very small, the outcome in that market will be similar to a perfectly competitive industry.”