plese help (Monopolistic Competition and Perfect Competition Compared) Illustrat

Question

plese help

(Monopolistic Competition and Perfect Competition Compared) Illustrated below are the marginal cost and average total cost curves for a small firm that is in long-run equilibrium. Locate the long-run equilibrium price and quantity if the firm is perfectly competitive. Label the price and quantity p1 and q1. Draw in a demand and marginal revenue curve to illustrate long-run equilibrium if the firm is monopolistically competitive. Label the price and quantity p2 and q2 How do the monopolistically competitive firm's price and output compare to those of the perfectly competitive firm? How do long-run profits compare for the two types of firms?

Explanation / Answer

d) the monopoly firm charges a higher price and produces less output than would be achieved with a perfectly competitive market e) economic profit is NOT guaranteed for any firm, a monopoly is more likely to receive economic profit than a perfectly competitive firm. In fact, a perfectly competitive firm IS guaranteed to earn nothing but a normal profit in the long run. The same cannot be said for monopoly a) http://www.tutor2u.net/economics/content/topics/competition/long-run_output.htm c) http://www.oswego.edu/~atri/e101monopoly.html Advanced editor is not working so i gave the links

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.