In the long run, firms in monopolistic competition produce at a level that is ___ the efficient scale of output. A. less than B. equal to C. more than D. All of the above are possible depending on market conditions. 相关知识点: 试题来源...
What is the difference between monopoly and monopolistic competition? What is the difference between perfect competition and monopolistic competition? What are the advantages and disadvantages of monopolistic competition? What happens to monopolistic competition in the long run?
Learn the monopolistic competition definition with examples. Study monopolistic competition vs. perfect competition and other market types to learn the differences. Related to this QuestionIn the long run, the price charged by the ...
I examine the role played by endogenous variety and monopolistic competition in the long-run transmission of monetary policy. I integrate free entry, product variety and monopolistic competition into a New Monetarist framework, considering preferences that give rise to either constant or variable markups...
Use the following two statements about monopolistic competition to answer this question.I. In the long run, the price of the good will equal the minimum of the average cost.II. In the short run, firms may earn a profit. A. I and II are true. B. I is true, and II is false. C....
Monopolistic Competition in the long run In the long run, the firm continues producing at the point where marginal cost (MC) intersects marginal revenue (MR). However, in the long run, the demand curve shifts leftwards as other firms enter the market. This is because, now, the heightened ...
Normal Profit in the Long Run:In the long run, firms in monopolistic competition will earn normal profit, which means they earn enough revenue to cover their costs, but not enough to earn an economic profit. This is because new firms can enter the market and compete away any profit opportun...
17. In the long run under monopolistic competition, when firms advertise, (a) a. they will still earn zero economic profit. b. they can earn positive economic profit by increasing market share. c. the market price must fall. d. the market price must rise. 18. Advertising (d) a. provi...
MonopolisticCompetition •Imperfectcompetitionreferstothosemarketstructuresthatfallbetweenperfectcompetitionandpuremonopoly.•不完全竞争是指那些介于完全竞争和完全垄断之间的市场结构。TheFourTypesofMarketStructure NumberofFirms?ManyfirmsTypeofProducts?Onefirm Fewfirms Differentiatedproducts Identicalproducts Monopoly(...
Long run: In monopolistic competition, entry and exit drive economic profit to zero. • If profits in the short run: New firms enter market, taking some demand away from existing firms, prices and profits fall.• If losses in the short run:Some firms exit the market,remaining ...