Share
Explore BrainMass

Monopolistic competition

The monopolist and the perfect competitor differ in that:
they face different demand curves
the monopolist does not always produce at an output at which MC=MR
the monopolist is always a large firm
the monopolist is more efficient

The monopolist is a(n):
imperfect competitor and has a horizontal demand curve
imperfect competitor and has a downward sloping demand curve
perfect competitor and has a horizontal demand curve
perfect competitor and has a downward sloping demand curve

Monopolistic competition differs from perfect completion only with the respect to:
the number of firms in the industry
product differentiation
barriers to entry
economics of scale

In the long run in monopolistic competition:
most firms are making a profit
the absence of entry barriers ensures that there are no profits
economics of scale ensure that there are no profits
most firms are losing money

Solution Preview

Monopolistic competition
The monopolist and the perfect competitor differ in that:
they face different demand curves
(Perfect competitor have horizontal ...

Solution Summary

Monopolistic competition is briefly compared to perfect completion.

$2.19