at the Because this market is a monopolistically competitive market, you can tel
ID: 3143083 • Letter: A
Question
at the Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that optimal quantity for each firm. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is minimum average total cost. the True or False: This indicates that there is a markup on marginal cost in the market for jackets. True False Monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. The presence of the externality implies that there is too much entry of new firms in the market.Explanation / Answer
Because this market is a monopolistically competitive market, you can tell that it is in long run equilibrium by the fact that P= ATC>MC at the optimal quantity for each firm.
Furthermore , a monopolistically competitive firm's average total cost in long run equilibrium is greater than the minimum average total cost.
(True) There is markup in marginal cost.
Imperfect competition externally implies that there is too much entry of new firm in the market
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