In pure monopoly there is only one. In monopolistic competition, there are a large number of firms, but not as many as in perfect completion” (2012, p. 556). There are several implications of having a large number of firms in a monopolistic competitive market. For example, they hold a small share of the total market. Another implication of having a large number of firms in a monopolistic competitive market is that it is more difficult for all firms to come together to collude, so they lack collusion. The third implication is that each firm acts independently of the other. References Miller, R. (2012). Monopolistic Competition: The Micro View (17th ed. pp. 555-572). Boston, MA: Addison-Wesley.3. Suppose the market for auto workers is initially in equilibrium, but then automakers purchase capital goods that replace workers. What happens to the auto worker market? Explain. Now suppose that automakers improve working conditions in their factories. What are the effects? Explain. Assuming that the market for auto workers is initially in equilibrium, but then automakers purchase capital equipment that replaces workers, the market for auto workers would decline. ReferencesMiller, R. (2012). The labor market: supply, demand and outsourcing: The Micro View (17th edition, pp. 618-641). Boston, MA: