In the figure monopolistic competition vi in the long run firms will
44)In longrun equilibrium, a firm in monopolistic competition earns A)a normal profit. B)an economic profit but the economic profit is less than it would be if the firm was a monopoly.(Figure: Monopolistic Competition) Refer to the figure. Suppose the figure represents a firm that operates in a monopolistic competitive market. In this market, in the long run you would expect: in the figure monopolistic competition vi in the long run firms will
(Figure: Monopolistic Competition VI) In the figure, firms, in the long run, will: 18. In the long run monopolistically competitive firms produce less than the output at which average total cost is minimized. This is referred to as: 19. Toby operates a small deli downtown.
(Figure: Monopolistic Competition VI) In the figure Monopolistic Competition VI, in the long run firms will: A) enter this market until all firms earn a zero economic profit. B) exit this market until all remaining firms earn a zero economic profit. C) enter this market, leading to excess profit for all of the firms. This is the ideal or optimum output which firms produce in the longrun. Under monopolistic competition the demand curve facing the individual firm is not horizontal as under perfect competition, but it is downward sloping. A downward sloping demand curve cannotin the figure monopolistic competition vi in the long run firms will Monopolistic Competition in the Longrun. At this point, the firm's economic profits are zero, and there is no longer any incentive for new firms to enter the market. Thus, in the longrun, the competition brought about by the entry of new firms will cause each firm in a monopolistically competitive market to earn normal profits, just like a perfectly competitive firm.