a) Describe the similarities and differences between perfectly competitive and monopolistically competitive market structure b) Monopolistically competitive firms are similar to monopolies in that they are able to earn economic profit in the long run. Do you agree with this statement? If not, then why not? c) In the long run , the selling price of a monopolistically competitive firm's product is equal to the minimum per unit cost of production. Do you agree with this statement? If not , then why not? d) If some firms exit a monopolistically competitive industry, what will happen to the demand curve for the typical firm remaining in the industry?
a) Describe the similarities and differences between perfectly competitive and monopolistically competitive market structure b) Monopolistically competitive firms are similar to monopolies in that they are able to earn economic profit in the long run. Do you agree with this statement? If not, then why not? c) In the long run , the selling price of a monopolistically competitive firm's product is equal to the minimum per unit cost of production. Do you agree with this statement? If not , then why not? d) If some firms exit a monopolistically competitive industry, what will happen to the demand curve for the typical firm remaining in the industry?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:a) Describe the similarities and differences between perfectly competitive and monopolistically
competitive market structure
b) Monopolistically competitive firms are similar to monopolies in that they are able to earn
economic profit in the long run. Do you agree with this statement? If not, then why not?
c) In the long run , the selling price of a monopolistically competitive firm's product is equal to
the minimum per unit cost of production. Do you agree with this statement? If not , then why
not?
d) If some firms exit a monopolistically competitive industry, what will happen to the demand
curve for the typical firm remaining in the industry?
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