Carefully explain what will happen as we move from the short run to a long run equilibrium in a monopolistically competitive industry if firms are making a positive profit in the short run. Your explanation should clearly state what will happen to the demand curve facing an individual firm and the reason why this happens.© BrainMass Inc. brainmass.com October 10, 2019, 1:21 am ad1c9bdddf
If firms are making profits (i.e. price > average total cost) => everyone else will know about this => others will want to ...
Short Run to Long Run