aUse a graph to demonstrate why a profit-maximizing monopolistically competitive firm must operate at excess capacity. Explain why a perfectly competitive firm is not subject to the same constraint. 使用一张图表展示为什么一家profit-maximizing monopolistically竞争企业必须经营在超额能力。 解释为什么一家完...
Second, notice that because price exceeds marginal cost, the graph contains a gray area of welfare loss, an unexploited value that neither firms nor customers obtain. Because monopolistic competition was seen as both common and economically inefficient, it was argued that market systems were ...
You can think of a monopolistically competitive business as running like a monopoly in the short-run and a competitive business in the long-run. In the short-run, a monopolistically competitive business takes the same two steps as monopolies to profit-maximize. In the long-run, free entry a...
Monopolistic Competition: Short & Long-Run Equilibrium The Monopolistic Competition graph is the same as the monopolies graph. The firm has the same short and long equilibrium and makes zero economic profits. Using theProfit Maximization Rule, MC = MR, we can find the quantity and draw a vertic...
Answer to: What are economic profit-maximizing strategies that may be made by a perfectly competitive firm, a monopolist firm, and a monopolistic...
competitive business in the long-run. In the short-run, a monopolistically competitive business takes the same two steps as monopolies to profit-maximize. In the long-run, free entry and exit drive economic profit to zero in monopolistically competitive markets, just as it does in competitive ...