Monopolistic competition has a downward-sloping demand curve. Thus, just as for apure monopoly, its marginal revenue will always be less than the market price because it can only increase demand by lowering prices, but by doing so, it must lower the prices of all units of its product. Hence...
Do monopoly firms obtain only excess profits in the short run?Can a firm under perfect competition operate in the short run, when it is making losses? If so, then under what condition?Graph the situation of a monopolistic competitor in the short-run, and in the long-run...
Briefly compare the short run to the long run position on the basis of allocative efficiency and productive efficiency. In a monopoly competition. How can I understand equilibrium of the firm in the short run and long run (perfect competition)? One difference between the short run and ...
scheme. The country was to be divided into seven areas, each to be supplied and serviced by one manufacturer. This meant monopoly, of course, but a necessary one. Like the telephone service, it was in the public’s best interests. You couldn’t have competition in watchbird service. Watchb...
1) In the short run what is the similarity in relation to profits in a monopoly and a monopolistic competitive market? Is there a difference in the long run? Explain (graph might be helpful) 2) Expl Explain how the very nature of competition will, o...
1. Describe and explain price and output determinations for firms. How does the change from the short run to the long run for a Monopolistic Competitor? 2. What effect does product differentiation hav Briefly, graph and describe a monopoly market structure. ...
Under which circumstances will a profit-maximizing perfectly competitive firm shut down in the short run? Do monopoly firms obtain only excess profits in the short run? Why can a firm in monopolistic competition make an economic profit only in the short run?
True or false? In the short run, if marginal cost is increasing, average fixed cost is increasing. True or False: A monopoly's supply curve is the portion of its marginal cost curve that lies above its average variable cost curve.
In simple terms, why is the long-run aggregate supply curve vertical? Why can't the demand curve be negative? Why can't long-run costs exceed short-run costs? Give two reasons why the MR curve of a pure monopoly is downward sloping. ...
Why is it that firms can earn profits in the long run in monopoly and oligopoly, but not in monopolistic competition and perfect competition? Explain how the very nature of competition will, over the long run, reduce the number of competitors in any market, even in an oligopo...