A monopolistically competitive firm cannot make strictly positive profits in the long run because the firm must operate at the efficient scale. entry of other firms shifts the market supply curve to the right and lowers the price until the firm makes zero profits. the firm's optimal quantity to produce is where marginal revenue equals marginal cost. entry of other firms takes business from the firm and shifts its demand curve to the left, lowering profits until it makes zero p

A monopolistically competitive firm cannot make strictly positive profits in the long run because the firm must operate at the efficient scale. entry of other firms shifts the market supply curve to the right and lowers the price until the firm makes zero profits. the firm's optimal quantity to produce is where marginal revenue equals marginal cost. entry of other firms takes business from the firm and shifts its demand curve to the left, lowering profits until it makes zero p

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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