Comparing monopolistic competition with perfect competition>The monopoly is inefficient because it is able to restrict output and increase prices>The monopolistic firm's inefficiency is due to the consumers desire for variety> Though allocative efficiency does not occur it is hard to argue that consumer...
9、ProfitAveragetotal costProfitMCFigure 1 Monopolistic Competitors in the Short RunCopyright2003 Southwestern/Thomson LearningDemandQuantity0PricePriceLoss-minimizingquantityAveragetotal cost(b) Firm Makes LossesMRLossesATCMCwhy?Copyright 2004 South-WesternMonopolistic Competition(Long Run) The situat 10、ion...
QuantityPriceATCQPATCMCDMR CHAPTER 17MONOPOLISTIC COMPETITION8Monopolistic Competition and Monopoly Short run: Under monopolistic competition, firm behavior is very similar to monopoly. Long run: In monopolistic competition, entry and exit drive economic profit to zero. • If profits in the ...
MonopolisticCompetitionChapter11 DefinitionsandDescriptionsofMonopolisticCompetition ProductDifferentiation IdentifyingtheMonopolisticCompetitor ProfitMaximizationinShort-RunandLong-Run PriceDiscrimination EfficiencyorInefficiency ClosingThoughtsMonopolisticCompetition OnoneextremeisthePerfectCompetitionmodel OntheotherextremeistheMono...
Long-Run Decisions on Output and Price In the long run, companies in monopolistic competition still produce at a level where marginal cost and marginal revenue are equal. However, the demand curve will have shifted to the left due to other companies entering the market. The shift in the deman...
2、and the price to charge. Analyze the situation of a monopolistically competitive firm in the long run. Compare the efficiency of monopolistic competition and perfect competition. Define marketing and explain how firms use it to differentiate their products. Identify the key factors that determine...
Resultant long-run allocative efficiency:With monopolistic competition, allocative efficiency does not result (P > MC). With perfect competition, there will be allocative efficiency in the long run (Price = MC). Resultant long-run productive efficiency:As with allocative efficiency, productive efficienc...
Answer to: In the long run, in a monopolistically competitive market, price will be equal to which of the following: equal to ATC. greater ATC...
chapter_12Monopolistic Competition and Oligopoly(微观经济学-华侨大学,Jeff Caldwell)
The more firms there are, the more intensive they compete, and hence the lower is the industry price. . p: P=c+1/(b×n) (P129-130) , n↑, P↓) . ccording to the long-run-equilibrium monopolistic competition: . Pe=ACe (zero-profit), n=. . igure 6-3 . . and variety of ...