(a) Using a well labeled diagram, show and explain why in a perfectly
competitive market structure, when the marginal revenue equals marginal
cost, this is only a necessary but not sufficient condition for profit
maximization.
(6 marks)

(b) Bring out the salient features of a monopolistic competition market model
(6 marks)
(c) Using an appropriate diagram, illustrate and explain why prices are sticky in
oligopoly markets.

(8 marks)