A monopolistically competitive market is like a monopoly in that both market structures feature easy entry by new firms in the long run. the main objective of firms in both market structures is something other than profit maximization. firms in both market structures produce the welfare-maximizing level of output. firms in both market structures set price above marginal cost.

A monopolistically competitive market is like a monopoly in that both market structures feature easy entry by new firms in the long run. the main objective of firms in both market structures is something other than profit maximization. firms in both market structures produce the welfare-maximizing level of output. firms in both market structures set price above marginal cost.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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