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...
Total profit is represented by the cyan-colored rectangle in the diagram above. It is determined by the equilibrium output multiplied by the difference between AR and theaverage total cost (ATC). Companies in monopolistic competition determine their price and output decisions in the short run, just...
Pure CompetitionPure Competition: Long-Run EquilibriumPure MonopolyPure Monopoly: Demand, Revenue and Costs, Price Determination, Profit Maximization and Loss MinimizationPrice DiscriminationPure Monopoly: Economic EffectsMonopoly RegulationMonopolistic CompetitionMonopolistic Competition: Short-Run Profits and Losses...
(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...