Short-Run and Long-Run Monopolistic Competition Diagram (Source: Economicshelp.org) Monopolistic Competition vs. Perfect Competition vs. Monopoly Perfect Competition: In a perfectly competitive market, each company possesses such minimal market share that no individual seller can influence the industry-wid...
but in the long run, they make zero economic profit. The latter is also a result of the freedom of entry and exit in the industry. Economic profits that exist in the short run attract new entries, which eventually lead to increased competition, lower prices, and high output. ...
Market Models: Pure Competition, Monopolistic Competition, Oligopoly, and Pure Monopoly ◄ Current DocumentPure CompetitionPure Competition: Long-Run EquilibriumPure MonopolyPure Monopoly: Demand, Revenue and Costs, Price Determination, Profit Maximization and Loss MinimizationPrice DiscriminationPure Monopoly:...
(y) y $/output unit The firm’s long-run supply curve Product Differentiation Among Gas Stations AC MC D MR PM QM SHORT RUN DIAGRAM AC D’ D LONG RUN DIAGRAM P Q MC MR Figure 10.7 Long-run equilibrium in monopolistic competition 影带出租的需求估计为: P = 10 - 0.004Q, (Q = 每周...