Will ATC curve shift when perfectly competitive indstury adjusts to new long run equilibirum12/16/2023 ![]() ![]() This model differs from the model of perfect competition in one key respect: it assumes that the goods and services produced by firms are differentiated. The model of monopolistic competition assumes a large number of firms. The first model of an imperfectly competitive industry that we shall investigate has conditions quite similar to those of perfect competition. ![]() Explain what it means to say that a firm operating under monopolistic competition has excess capacity in the long run and discuss the implications of this conclusion.Explain and illustrate both short-run equilibrium and long-run equilibrium for a monopolistically competitive firm.Explain the main characteristics of a monopolistically competitive industry, describing both its similarities and differences from the models of perfect competition and monopoly.
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