Explore BrainMass

Explore BrainMass

    Monopolistic Competition-Shift in the Demand Curve

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    There are indeed several reasons why economic profits are short-lived: new-entrants with the same strategy, competitive reaction by producers of differentiated products, and close enough substitutes, etc. So that I can remember something that is conceptually simple, I would like to see a description in graphical terms of the mechanism by which profit is reduced to zero, in other words, how do I explain it in terms of demand curve and supply curve?

    © BrainMass Inc. brainmass.com March 4, 2021, 6:26 pm ad1c9bdddf

    Solution Summary

    Shift in the Demand Curve is studied.