In the long run, a monopolistically competitive firms earn a higher profit than perfectly competitive firms because monopolistically competitive firms have some monopoly power. b. monopolistically competitive firms produce a higher output than perfectly competitive firms because competition drives the perfectly competitive firm's output down. c. both monopolistically competitive and perfectly competitive firms produce where P = MC. d. both monopolistically competitive and perfectly competitive firms produce where P = ATC.
In the long run, a monopolistically competitive firms earn a higher profit than perfectly competitive firms because monopolistically competitive firms have some monopoly power. b. monopolistically competitive firms produce a higher output than perfectly competitive firms because competition drives the perfectly competitive firm's output down. c. both monopolistically competitive and perfectly competitive firms produce where P = MC. d. both monopolistically competitive and perfectly competitive firms produce where P = ATC.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 4QFR
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