In this structure, in the short term, firms make supernormal profits, though this changes in the long run. Their demand curve is inelastic; therefore, they are price setters. Answer and Explanation: Become a Study.com member to unlock this ...
A monopolist is a sole seller of a good or service and has the ability to set the price at whatever they want, which makes them a price setter. A monopolist will set this price in order to achieve a profit-maximizing output level....
Explain why monopolistic competition earns only a normal profit in the long run.Why does a firm in pure competition operate in the rising portion of its marginal cost curve? Why not produce where marginal cost is falling?Why, in a perfectly competitive market, does ...
A monopolist's profit-maximizing profit and output are given by the point at which marginal revenue and marginal cost are equal. Looking at the graph...
Using the assumptions of monopolistic competition, explain why such firms earn no economic profit in the long run. A monopolist engages in price discrimination: a. By charging the same price to all consumers, b. By charging a lower price to ...
A monopoly is a type of market structure in which there is a single seller in the market. The seller sells a unique type of product that has no close substitutes. The monopolist has the power to decide the price and output in the market....
Monopolistic competitive firm is different from a perfectly competitive firm because: (a) There are many firms in the market. (b) In the long-run it will earn zero economic profit. (c) It is trying to minimize cost of pr...
Why can a monopolist continue to make positive profits even in the long-run while a perfectly competitive firm can make only zero economic profits in the long-run? A.Because a monopoly only has one firm while perfect competition has many. B.Because mono Which...
Using the assumptions of monopolistic competition, explain why such firms earn no economic profit in the long run. Provide real examples of perfect competitive and monopoly markets, and explain how these firms are price takers and price makers. Explain ...